El Salvador Launches First Tokenized U.S. Bond Offering
Date: 2024-11-20 Author: Oliver Abernathy Categories: IN WORLD
NexBridge Digital Financial Solutions S.A de C.V., a digital asset services company based in El Salvador, has partnered with Bitfinex Securities to launch the country’s first public offering of tokenized U.S. Treasury bonds.
The offering, which began Tuesday, aims to raise at least $30 million in deposits. Subscriptions for the product began on November 19 and will run through November 29, according to Bitfinex Securities. The tokens will be available for investment in the stablecoin Tether (USDT), with Bitcoin to be added in the future. Once subscribed, the tokens will trade on Bitfinex Securities’ secondary market under the ticker USTBL. Their value is secured by a short-term Treasury bond ETF from BlackRock (iShares Treasury Bond 0-1yr UCITS).
The tokenization of real assets such as bonds and funds is a growing segment at the intersection of digital technologies and the traditional financial system. The use of blockchain technology in this process ensures faster transaction processing and increased efficiency. According to rwa.xyz, the size of the US tokenized bond market has tripled in a year, reaching $2.4 billion.
Jesse Knutson, Head of Operations at Bitfinex Securities, noted that the inclusion of USTBL tokens in investment portfolios provides investors with the opportunity to combine digital assets with the stability of traditional finance, which contributes to diversification and risk mitigation.
This move not only expands access to investment for citizens of El Salvador, but also highlights the country's role as an emerging crypto hub.
