El Salvador has recently entered the booming market of tokenized U.S. Treasuries, making it the first country in the region to do so. NexBridge Digital Financial Solutions S.A de C.V, a digital asset issuer based in El Salvador, has partnered with Bitfinex Securities to launch the first regulated public tokenized T-Bill offering in the country.
This new offering, which opened for business on Tuesday, aims to provide access to T-Bill investments for individuals and organizations that were previously unable to invest in these products. The goal is to raise a minimum of $30 million in deposits, according to Bitfinex Securities. The initial subscription for the product started on Tuesday and will remain open until November 29. Investors have the option to purchase the token with Tether’s stablecoin (USDT) and there are plans to make it available in bitcoin (BTC) as well. After the subscription period, the tokens will be traded on Bitfinex Securities’ secondary market under the ticker USTBL. The value of the token is backed by BlackRock’s short-term Treasury bond ETF (iShares Treasury Bond 0-1yr UCITS).
The tokenization of real-world assets (RWA) is a rapidly growing sector that combines digital assets and traditional finance by placing assets such as bonds, credit, and funds on blockchain technology. This sector aims to provide faster settlements and increased efficiency compared to traditional financial systems. Token versions of U.S. Treasury notes have been at the forefront of these tokenization efforts, with the market size tripling in a year to $2.4 billion, according to rwa.xyz data.
“The inclusion of USTBL tokens in investment portfolios will enable investors to balance digital asset exposure with the stability of traditional finance, offering a new level of diversification that can help reduce overall portfolio risk,” said Jesse Knutson, head of operations at Bitfinex Securities.
Overall, this partnership between NexBridge Digital Financial Solutions and Bitfinex Securities represents a significant step towards integrating digital assets and traditional finance in El Salvador. It opens up new investment opportunities for individuals and organizations in the country and provides a unique way to diversify investment portfolios. With the tokenization of U.S. Treasuries gaining momentum globally, this move by El Salvador could position the country as a key player in the intersection of digital assets and traditional finance.