Bitfinex Revives Tokenized Bond Program on Bitcoin's Liquid Network for Yield-Seeking Crypto Investors

10 days ago

KEY FACTS: Bitfinex Securities has relaunched its tokenized bond program on Bitcoin's Liquid Network, issuing USDt-denominated bonds in partnership with the Luxembourg-based securitization fund ALTERNATIVE (managed by Mikro Kapital) and supported by Tether’s Hadron platform for token management. Following four prior issuances since 2023 that totaled $6.2 million, three of which fully matured and repaid approximately $1 million in principal, delivering over $1.1 million in 20 on-chain coupon payments by the end of the first complete cycle in 2025, the company anticipates future sales exceeding $10 million. These 11-month bonds provide yield-seeking high-net-worth crypto investors and institutions (mainly from Europe and Asia) with exposure to emerging-market private credit, including financing for SMEs and women-led businesses, all executed on-chain via the Liquid Network’s confidential transactions. Bitfinex Securities, regulated in Kazakhstan’s Astana International Financial Centre and El Salvador, currently lists about $250 million in tokenized securities.

Source: Bitfinex Securities /X

Bitfinex Revives Tokenized Bond Program on Bitcoin's Liquid Network for Yield-Seeking Crypto Investors

Bitfinex Securities has announced the relaunch of its tokenized bond issuance program on Bitcoin's Liquid Network. The initiative, which had previously facilitated four offerings totaling $6.2 million since 2023, is now resuming with expectations that future sales will surpass $10 million. The program focuses on USDt-denominated bonds (using Tether's USDT stablecoin) issued in partnership with ALTERNATIVE, a Luxembourg-based securitization fund managed by the microfinance group Mikro Kapital. These bonds provide investors with exposure to emerging-market private credit opportunities, including financing for small and medium-sized enterprises (SMEs) and women-led businesses in developing regions.

All aspects of the bonds, from initial fundraising and coupon (interest) payments to principal repayments at maturity, are executed fully on-chain via the Liquid Network, a sidechain of Bitcoin developed by Blockstream. The Liquid Network offers enhanced features such as faster transaction times, confidential transactions (which shield key settlement details like amounts from public view), and built-in support for tokenized assets while maintaining strong ties to Bitcoin's security model.

Bitfinex Securities, the regulated arm of the prominent cryptocurrency exchange Bitfinex, operates under licenses from the Astana International Financial Centre (AIFC) in Kazakhstan and El Salvador. It handles the issuance, listing, and secondary trading of these tokenized securities. Token management is supported by Tether's Hadron platform. According to the company, the platform currently lists approximately $250 million in regulated tokenized securities.

The previous issuances demonstrated strong performance, as three of the four bonds have already matured and been fully repaid, returning about $1 million in principal to investors. Over the course of the first complete tokenized bond cycle in 2025, investors received 20 on-chain coupon payments totaling more than $1.1 million.

Jesse Knutson, Head of Operations at Bitfinex, noted that the primary buyers are high-net-worth individuals and crypto-focused institutions, predominantly from Europe and Asia, who are looking for ways to generate yield on their USDT holdings. With a lot of discussion this year around yield-generating stablecoins, Knutson added that Bitfinex's product offers a solution with an easy, regulated and established vehicle for earning yield on USDt balances.

The tokenized bonds typically feature an 11-month duration and run parallel to the issuer's conventional monthly bond program. Transactions benefit from the Liquid Network's confidential transaction capabilities, which help maintain privacy for sensitive financial details while ensuring regulatory compliance through features like whitelists and transfer restrictions.

The relaunch arrives amid heated ongoing debates in the United States regarding stablecoins and yield-bearing products. The US GENIUS Act, passed in July 2025, prohibited stablecoin issuers themselves from paying yield directly to holders. However, the legislation left room for third-party platforms, such as exchanges or specialized securities providers, to structure separate investment vehicles that generate returns on stablecoin balances, creating what some industry observers describe as a regulatory "loophole."

This distinction has sparked concerns from traditional banking institutions. In January 2026, Bank of America CEO Brian Moynihan warned that interest-bearing stablecoin products could siphon as much as $6 trillion in deposits away from US banks, potentially reducing lending capacity and driving up funding costs for the traditional financial system.

The issue has become a flashpoint in broader discussions around digital asset regulation, particularly in relation to the proposed CLARITY Act, which seeks to establish a comprehensive framework for cryptocurrencies and tokenized assets. On January 14, 2026, Coinbase CEO Brian Armstrong withdrew his support for the bill, citing stablecoin yield provisions as a major unresolved sticking point.

Bitfinex's move shows the growing momentum behind Bitcoin-native tokenization. By leveraging the Liquid Network, which has hosted various tokenized assets, including earlier microfinance bonds with Mikro Kapital, tokenized US Treasury bills, and even mining-related notes, the program positions tokenized securities as a compliant, efficient bridge between crypto liquidity and real-world yield opportunities.

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