Bitfinex Securities Ltd, a platform specializing in the listing and trading of security tokens, has entered into a significant Memorandum of Understanding (MOU) with Mikro Kapital, an impact finance and microfinance group headquartered in Luxembourg. This groundbreaking collaboration seeks to explore initiatives related to tokenizing, listing, and trading debt securities. Furthermore, it will evaluate the potential utilization of USD-backed Tether tokens (USDt) and Euro-backed Tether tokens (EURt) for capital raising and microfinancing endeavours.
Pioneering Tokenized Microfinancing
Mikro Kapital boasts a highly diversified lending portfolio encompassing 300,000 borrowers across 14 countries, with a collective valuation of approximately EUR1.35 billion. Notably, 40% of these borrowers are women entrepreneurs, primarily engaged in service and agricultural businesses within local rural communities. The MOU presents an opportunity to investigate how tokenized, low-friction, low-volatility digital assets can facilitate increased investments in microfinance opportunities.
Bitfinex Securities is a leading platform licensed within the FinTech Lab under the jurisdiction of the Astana Financial Services Authority. It specializes in the listing and trading of tokenized securities. Paolo Ardoino, CTO of Bitfinex Securities, emphasized the significant potential of tokenized securities and microfinancing solutions in emerging markets. He noted that the global microfinancing market is projected to more than double from 2020 to 2027, aligning perfectly with Mikro Kapital’s expertise in the microfinancing sector.
Driving Microfinancing Innovation
Jesse Knutson, Head of Operations at Bitfinex Securities, highlighted the growing demand for yield in the digital asset industry. Tokenized bonds, featuring clearly defined issuer obligations and investor rights, provide an attractive option for investors seeking favourable yields with lower risk profiles than previously available in the digital asset industry.
Vincenzo Trani, President of Mikro Kapital, underscored the significance of this partnership, marking a milestone for the group’s entry into digitalization and blockchain technology. Trani expressed the objective of creating new opportunities for investors and the microfinance industry. This partnership underscores their commitment to advancing innovative solutions and fostering digital transformation in the financial sector.
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The strategic alliance between Bitfinex Securities and Mikro Kapital signifies both companies’ dedication to innovation and collaborative growth within the microfinancing sector. Together, they aim to introduce new forms of financing and drive technological advancements, propelling the industry towards a more inclusive and tech-driven future.