Bitfinex offers tokenized US treasury bills in historic El Salvador move

November 20, 2024
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Bitfinex offers tokenized US treasury bills in historic El Salvador move

Photo credit: Hugo Martínez/Pexels

El Salvador has entered the global financial spotlight with the launch of the first-ever regulated public offering of tokenized US Treasury Bills. 

This initiative, spearheaded by Bitfinex Securities El Salvador S.A. de C.V., operates under the country’s newly introduced securities licensing framework, signifying a major step in blending traditional finance with blockchain technology.

NexBridge Digital Financial Solutions S.A. de C.V., a registered issuer in El Salvador, will oversee the issuance of the token, which will provide investors with exposure to short-term U.S. Treasury Bills denominated in USD. 

The token, named USTBL, will be made available for trading on Bitfinex Securities' secondary market once the subscription period concludes.

The offering aims to raise a minimum of $30 million, with the proceeds allocated to the iShares $ Treasury Bond 0-1yr UCITS ETF, a publicly listed exchange-traded fund. 

Investors can participate in the subscription period, which began on November 15 and will remain open until November 25, using Tether (USDt). Following the initial phase, Bitcoin (BTC) will also be accepted.

This initiative represents a fusion of the security of government-backed assets and the efficiency of tokenized finance. 

By enabling investors to access US Treasury Bills through blockchain technology, the offering introduces a novel diversification option for portfolios, allowing exposure to stable, low-risk financial instruments while leveraging the advantages of digital assets.

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