Bitfinex Securities issues tokenized U.S. Treasury bonds for the first time under El Salvador law

ChainCatcher news, according to Cointelegraph, the digital securities exchange Bitfinex Securities is conducting the first public offering of tokenized U.S. Treasury bills (T-bills) under the legal framework of El Salvador. As part of this issuance, the El Salvador-based digital asset issuer NexBridge Digital Financial Solutions will issue a new token with the trading code USTBL. This token aims to provide investors with an opportunity to invest in short-term U.S. Treasury bills denominated in U.S. dollars (USD).

The initial offering by Bitfinex Securities aims to raise at least $30 million to continue the issuance of tokens, with the initial subscription period starting on November 19, 2024, and ending on November 29. According to Bitfinex Securities, this sale is the "first regulated" tokenized U.S. Treasury product based on Bitcoin technology. The new token will be issued on the Bitcoin Layer 2 network Liquid Network, and it is expected to provide an annualized yield to maturity of 5.02%. Proceeds from this issuance will be allocated to the iShares $ Treasury Bond 0-1yr UCITS ETF, which is a publicly listed ETF designed to track the investment results of an index composed of U.S. Treasury bonds denominated in U.S. dollars issued by the U.S. Department of the Treasury.