Bitfinex Securities and Mikro Kapital have announced the launch of two new tokenized bond issues under the ALTERNATIVE securitization fund. Founded in 2008, Mikro Kapital is a Luxembourg-based microfinance and impact investment company that focuses on providing microcredit and financial services to small and medium-sized enterprises in emerging markets. The bond program will feature 11-month and 36-month bonds with 10% and 13.5% coupon rates, respectively. These bonds are issued on the Liquid Network and aim to raise between 500,000 and 10,000,000 USDt with a minimum investment of 125,000 USDt. The collaboration between Bitfinex Securities and Mikro Kapital aims to merge traditional and crypto investments to bring innovative financial solutions to the microfinancing sector.
Jesse Knutson, Head of Operations at Bitfinex Securities, highlighted the significance of the collaboration in merging traditional and crypto investments to innovate financial solutions for the microfinancing sector. Leveraging the Liquid Network, the companies aim to introduce innovative financial solutions that combine the strengths of traditional and crypto investments. The Liquid Network, developed by Blockstream, is a Bitcoin layer-2 solution designed to enhance the functionality of the Bitcoin blockchain by enabling faster, more confidential transactions and the issuance of digital assets. It operates as a sidechain to Bitcoin and allows for asset issuance, including regulated security token offerings.
The proceeds from the tokenized bond issues will be invested in microfinance and sharing economy projects, supporting small businesses and entrepreneurs in emerging markets. ALTERNATIVE, Mikro Kapital’s securitization fund, currently supports 180,000 end-borrowers across ten countries with a loan portfolio of approximately €300 million, with 35% of the beneficiaries being women entrepreneurs in local and rural communities. The debut tokenized bond issued by Mikro Kapital in October 2023 raised over $5.2 million USDt, making it the market’s first for microcredit. This latest offering aims to further support small businesses and entrepreneurs in emerging markets.
The capital raise for the new tokenized bonds will begin on July 3 and conclude on July 31. The monthly issuance program may expand to include additional durations and coupon rates in the future. This collaboration between Bitfinex Securities and Mikro Kapital demonstrates a commitment to driving innovation in the financial sector, particularly in microfinancing. By leveraging the strengths of both traditional and crypto investments, the companies are working to bring new forms of financing to the microfinance sector through tokenized bond issuances on the Liquid Network.
