Bitfinex’s recently introduced Tether tokenized bond, initially celebrated as the beginning of a “new era for capital raises”, has failed to attract the expected level of investment and interest.
Bitfinex Securities, a platform specializing in the listing of tokenized real-world assets (RWA), announced the launch of its first tokenized bond, ALT2611, in October, and the new offering was made available to the public on November 15.
However, after a two-week bidding period, the official website indicates that only $1.5 million has been raised, short of the goal of $10 million.
The target of 100,000 ALT2611 worth 10 million USDT was set for two weeks after launch in the announcement, but appears to have been extended by another fortnight, with only 15,000 ALT2611, or 15% of the target achieved so far.
The ALT2611 bond is a 36-month bond with a 10% coupon, denominated in USDT. It is issued by Alternative, a Luxembourg-based securitization fund managed by Mikro Kapital.
The minimum initial purchase size of the bond was set at 125,000 USDT, with trading permitted on the secondary market in denominations of 100 USDT.
Tokenized bonds represent a digital version of traditional bonds issued on a blockchain. They offer several benefits over paper bonds, including greater liquidity, accessibility, security, transparency and the ability to trade 24 hours a day.
In particular, the ALT2611 bonus is not available to US citizens or persons residing in the United States. The Security Note will be governed by and construed in accordance with the laws of the Grand Duchy of Luxembourg.
The bond launch was initially met with optimism, with Paolo Ardoino, Tether’s chief technology officer, describing it as heralding a “new era for capital raises”, with the expectation that USDT would become a key asset. in this emerging financial system.
The bond is issued on the Liquid Network, a Bitcoin sidechain designed for fast and compliant settlement of digital assets and tokenized securities.
However, the disappointing response to Bitfinex’s first USDT bond issuance has drawn criticism from some quarters.
Cryptocurrency Trader Novacula Occami commented“Bitfinex’s first USDT bond issuance is a flop,” before adding: “Sorry Paolo, USDT is not going to dominate the capital markets. BitFinex Securities Kazakhstan is not keeping investment bankers awake.”
The latest development comes in the wake of Bitfinex addressing a phishing attack in early November. The exchange described the incident as a “minor information security incident” in a blog post, confirming that no funds were lost.
The attack targeted customer accounts through a phishing attempt on a Bitfinex customer support agent. Following this, the exchange has been working to improve its security measures.
At the same time, the UK Financial Conduct Authority issued a warning against Bitfinex for unauthorized promotion of financial services and products.
As the extended offering period for the ALT2611 bond continues, the crypto community is watching closely to see if Bitfinex can turn the tide and reach its investment goal.
