Bitfinex Securities launches tokenized US Treasury Bills in El Salvador

Bitfinex Securities has launched the first regulated public offering of tokenized U.S. Treasury Bills under El Salvador’s new securities framework.

According to a press release shared with Crypto.news, the offering allows investors to purchase digital tokens tied to short-term US Treasury Bills by combining traditional financial instruments with blockchain technology.

The token will be issued by NexBridge Digital Financial Solutions and will represent shares in the iShares $Treasury Bond 0-1 year UCITS ETF. This fund tracks U.S. Treasury Securities with maturities of less than one year, providing a stable investment option backed by U.S. government bonds, one of the safest financial instruments in the world.

The first subscription period of the token will begin on November 19, 2024 and continue until November 29, with a minimum increase of $ 30 million targeted. Investors will be able to participate in the offering using the popular blockchain-based stablecoin Tether (USDT), which will be followed by Bitcoin (BTC) payments.

After the subscription period, the token will be traded on the Bitfinex Securities secondary market under the ticker symbol USTBL, priced in USDt.

This offering highlights a new way for investors to access Treasury Bills. Traditional Treasury Bill investments often require working with banks or brokers, limiting access for smaller investors or investors in areas with fewer financial services. Tokenization enables easier and more global trading by using blockchain technology to convert financial assets such as Treasury Bills into digital tokens.

El Salvador’s adoption of crypto

El Salvador’s regulatory environment supported this innovation. In January 2023, the country passed a new securities law granting Bitfinex Securities its first Digital Asset License.

Since then, many tokenized assets and stablecoins have been launched under the framework, reflecting El Salvador’s focus on integrating blockchain into its financial system.

In August, it was reported that the El Salvador government cold wallet had added 162 Bitcoins since March 16, purchasing one Bitcoin per day. Blockchain data revealed that the wallet currently holds 5,851 BTC worth $356.4 million, with an average purchase cost per coin of $44,835. These purchases were in line with President Nayib Bukele’s promise to buy one Bitcoin a day, aimed at building the country’s “Bitcoin piggy bank.”

By offering US Treasury Bills via blockchain, Bitfinex Securities aims to open access to this stable investment for individuals and institutions worldwide, especially those previously excluded from these markets. This initiative is in line with broader trends towards combining traditional finance with decentralized technology.