Bitfinex Securities, sister firm of stablecoin issuer Tether, is to host the issuance of its first tokenized bond. ‘Alternative’, a Luxembourg micro finance fund, will issue the bond. The Alternative fund is active in Italy and Eastern Europe and is managed by Mikro Kapital.
The most novel aspect of the three year bond isn’t the 10% yield. It that it’s denominated in the Tether stablecoin. That could be viewed as risky for investors. You’re not only betting that Mikro Kapital can pay you back in three years, you are also hoping that the Tether stablecoin is still worth one dollar in 2026.
For Mikro Kapital it’s a brilliant idea. In three years, if Tether is still worth a dollar, it has to pay back what it owes. But if it turns out that Tether is worth less, then it effectively received some free money. That looks like a smart deal for Mikro Kapital.
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