Bitfinex ALT2611 Tokenized Bond Stumbles, Raises Only 15% of $10M Goal

Bitfinex Tether’s $1.00 tokenized bond, the ALT2611, falls short, raising only $1.5 million of its $10 million target two weeks post-launch. Bitfinex Securities had anticipated a more robust response to their innovative capital-raising approach.

According to the official website, the offering period for ALT2611, initially set for a two-week target, has been extended, but only 15% of the goal has been reached. Alternative, a Luxembourg-based securitization fund managed by Mikro Kapital, issues a 36-month 10% coupon bond denominated in USDT.

Despite the allure of tokenized bonds as blockchain-based, liquid, and transparent financial instruments, ALT2611 faces hurdles. The minimum initial purchase size is $125,000, limiting accessibility. Additionally, it excludes American citizens or those in the U.S. Crypto trader Novacula Occami dismisses Bitfinex’s USDT bond as a “flop,” expressing skepticism about USDT dominating capital markets.

Meanwhile, Bitfinex’s first USDT bond issue is a flop. After a 15 day offer period only $1.5mm of $10mm was raised. Sorry Paolo, USDT ain’t going to dominate capital markets. BitFinex Securities Kazakhstan isn’t keeping investment bankers up at night. https://t.co/RsIhxAdIiI pic.twitter.com/yNJzJsf9ux

— Novacula Occami (@OccamiCrypto) November 28, 2023

Furthermore, Paolo Ardoino, Tether’s CTO, thought raising money and making USDT a key part of the money world was a big deal. But now, people feel differently about his positive thoughts, and the excitement about his impact on fundraising and USDT’s role has changed.

Exciting!
This is the first bond listed on Bitfinex Securities. A new era for capital raises through deep liquid markets and stock/fond markets has begun.

Furthermore $USDt will become the underlying denomination asset of this new financial ecosystem.

And yes. It leverages… https://t.co/ekXj3gY7Xj

— Paolo Ardoino 🍐 (@paoloardoino) October 25, 2023

Bitfinex ALT2611 Tokenized Bond Falls Short

Bitfinex launches its tokenized bond on the Liquid Network, a high-throughput Bitcoin sidechain. It seeks to leverage blockchain advantages such as liquidity, security, and 24/7 trading.

Cointelegraph’s attempt to seek comments from Bitfinex and Tether on this underwhelming response remains unanswered. This setback follows Bitfinex Securities’ acquisition of a Digital Asset Service Provider license in El Salvador in April. The firm had expressed interest in exploring its Bitcoin bonds.

Central America’s sovereign dollar bonds, despite Bitfinex’s struggles, have been robust performers, boasting a 70% return in 2023, as reported by Cointelegraph in August. Bitfinex’s challenge underscores the unpredictable nature of the evolving digital asset landscape.

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