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. 

The offering enables investors to purchase digital tokens linked to short-term U.S. Treasury Bills, combining traditional financial instruments with blockchain technology, according to a press release shared with crypto.news.

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

The token’s initial subscription period begins on November 19, 2024, and runs until November 29, targeting a minimum raise of $30 million. Investors can participate in the offering using Tether (USDT), a popular blockchain-based stablecoin, with Bitcoin (BTC) payments set to follow. 

After the subscription period, the token will trade on the Bitfinex Securities secondary market under the ticker 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 those in regions with fewer financial services. Tokenization uses blockchain technology to convert financial assets, like Treasury Bills, into digital tokens, enabling easier and more global trading.

El Salvador’s embrace of crypto

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

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

In August, El Salvador’s government cold wallet reportedly added 162 Bitcoin since March 16, purchasing one Bitcoin daily. Blockchain data revealed the wallet now holds 5,851 BTC, valued at $356.4 million, with an average acquisition cost of $44,835 per coin. These purchases aligned with President Nayib Bukele’s pledge to buy one Bitcoin daily, aiming to build the country’s “Bitcoin piggy bank.”

By offering U.S. Treasury Bills through 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 aligns with broader trends of merging traditional finance with decentralized technology.