Bitfinex Securities, a digital securities exchange and sister firm of stablecoin issuer Tether, is debuting a tokenized public offering of tokenized United States Treasury bills (T-bills) under El Salvador’s legal framework.
As part of the offering, El Salvador-based digital asset issuer NexBridge Digital Financial Solutions will issue a new token that will be traded under the ticker USTBL. The token aims to provide investors with exposure to short-term US T-bills denominated in the US dollar.
The initial offering by Bitfinex Securities targets raising a minimum of $30 million to proceed with the token issuance, with the initial subscription period starting on Nov. 19 and ending on Nov. 29.
Tokenized US Treasury exposure built on Bitcoin
According to Bitfinex Securities, the sale is the “first regulated offering” of tokenized US Treasury exposure built on Bitcoin (BTC) technology.
Issued on the Liquid Network, a major Bitcoin layer-2 (L2) solution, the new token is expected to yield 5.02% per annum to maturity.
The issuance proceeds will be allocated to the iShares $ Treasury Bond 0-1yr UCITS ETF, a publicly listed ETF, which seeks to track the investment results of an index composed of US dollar-denominated government bonds issued by the US Treasury.
Investors can buy the token with Tether’s USDt stablecoin
According to the announcement, token investments will be initially available using Tether’s USDt (USDT) stablecoin and will later be available in Bitcoin.
Following the end of the initial subscription period, the token will be available for trading on Bitfinex Securities’ secondary market under the ticker USTBL, with trading in USDt.
In addition to yields to maturity, the new token is expected to provide benefits like instant settlement, withdrawals to whitelisted wallets and over-the-counter (OTC) trading, a spokesperson for Bitfinex Securities told Cointelegraph.
The sale isn’t available to North American investors
The new offering is enabled by the rapid adoption of digital asset regulations in El Salvador. After El Salvador passed its Digital Assets Securities Law in January 2023, Bitfinex Securities subsequently secured a local license in April 2023.
El Salvador’s licensing regime allows companies to tokenize funds, debt, equity and real estate, simplifying the process of raising capital for companies to issue tokens, fund investments and projects and offer a return to investors.
According to a spokesperson from Bitfinex Securities, the sale is available to all eligible investors apart from those in North America and sanctioned countries.
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