Crypto: Bitfinex Revives Tokenized Bonds Targeting Crypto-native Yield Seekers

Bitfinex Securities will restart USDt-denominated bond issuances on Bitcoin’s Liquid Network, following four previous tokenized offerings totaling $6.2 million since 2023.

Bitfinex Securities said on Monday it will resume issuing tokenized bonds for Luxembourg-based securitization fund ALTERNATIVE, with future sales expected to exceed $10 million.

The USDt-denominated bonds will be issued and settled on the Liquid Network, a Bitcoin sidechain, with fundraising, coupon payments and principal repayments executed fully onchain.

The move follows four prior tokenized bond issuances since 2023 totaling $6.2 million, three of which have matured and been fully repaid, representing about $1 million in principal returned to investors.

Across those offerings, investors received 20 onchain coupon payments worth more than $1.1 million by the completion of their first full tokenized bond cycle in 2025, according to the companies. The bonds give investors exposure to emerging-market private credit, including financing for small and medium-sized businesses and women-led enterprises.

Bitfinex Securities operates under licenses in the Astana International Financial Centre in Kazakhstan and in El Salvador, and handles issuance, listing and secondary trading, while Tether’s Hadron platform supports token management. The platform says it now lists about $250 million in regulated tokenized securities.

Jesse Knutson, head of operations at Bitfinex, told Cointelegraph that buyers have primarily been high-net-worth crypto investors and crypto-focused institutions from Europe and Asia seeking yield on their USDt (USDT) holdings.

The tokenized bonds operate alongside the issuer’s conventional monthly bond program and typically carry an 11-month duration. Transactions are recorded on the Liquid Network, though key settlement details are shielded by its confidential transaction features.

He added, “There’s been a lot of discussion this year around yield-generating stablecoins. This product offers a solution with an easy, regulated and established vehicle for earning yield on USDt balances.”

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Source: CoinTelegraph