Bitfinex Securities is set to launch two new tokenized bonds on the Bitcoin BTC -3.34% sidechain, the Liquid Network, as part of an ongoing issuance program with Alternative, the securitization fund of Luxembourg-based microfinance group Mikro Kapital.

The program features two different durations: an 11-month bond with a 10% coupon rate and a 36-month bond with a 13.5% coupon rate. They are part of an ongoing monthly program, with the option to expand to include further durations and coupons, according to a statement shared with The Block. A coupon rate is the annual interest rate paid by the bond issuer to the bondholders.

The capital raise will commence on July 3, targeting up to $10 million in USDT -0.020% with a minimum investment size of $125,000, and closes on July 31.

Leveraging Bitcoin’s Liquid Network for tokenization

Bitfinex Securities announced its first tokenized bond on the Liquid Network, also in collaboration with Mikro Kapital, raised more than $5 million in USDT in December 2023.

The Liquid Network is specifically designed for issuing assets, including stablecoins and regulated security token offerings, enabling issuers to create compliant issuances while allowing investors to self-custody, withdraw and trade securities peer-to-peer.

“By leveraging the Liquid Network, we are introducing innovative financial solutions that merge the strengths of traditional and crypto investments,” Bitfinex Securities Head of Operations Jesse Knutson said. “We are thrilled to continue our ongoing collaboration with Mikro Kapital and support them in bringing new forms of financing to the microfinancing sector through this latest tokenized bond issuance.”

The proceeds from the latest issue will be used to invest in microfinance and sharing economy projects to support small businesses and entrepreneurs in emerging markets, according to the statement.

Mikro Kapital’s securitization fund claims to have a loan portfolio totaling around €300 million ($323 million), supporting 180,000 borrowers in 10 countries.

Bitfinex Securities launched its digital asset services in El Salvador in January, in addition to its initial Kazakhstan entity. The firm unveiled a $6.25 million tokenized debt issue for an El Salvador airport Hampton by Hilton hotel complex in April.