Bitfinex Securities Launches 156 Million Pound Tokenized Real-World Assets in UK

Bitfinex Securities has launched two new products in the U.K., taking a unique approach to real-world assets (RWAs). The firm's latest offerings provide investors with access to debt issued by a community bank in Scotland and exposure to car finance mis-selling claims in the U.K.

The first product, titled "TITAN1," will allocate 5 million British pounds ($6.8 million) into subordinate debt issued by Castle Community Bank. This debt is designed to support loans for financially excluded customers in Edinburgh, Scotland. Investors in this product will receive a 20% dividend per annum, net of fees, paid quarterly for up to 10 years. The first five years of the investment are non-callable, ensuring stability for investors.

The second product, "TITAN2," will invest 100 million British pounds ($136 million) into litigation financing related to car finance mis-selling claims in the U.K. This market is anticipated to generate billions in compensation. Investors in this product will receive a 50% share of the claims recovery proceeds, which will be split proportionately among them. This structure is designed to provide investors with a significant return on their investment, leveraging the potential for large compensation payouts in the car finance mis-selling claims market.

Both products will be accessible to investors as tradable tokens via Bitfinex Securities’ secondary market. The tokens have been issued on the Liquid Network, a side chain of Bitcoin developed by technology firm Blockstream. This network ensures compliance standards and jurisdictional requirements through a whitelist system, where transfers require issuer authorization.

Bitfinex Securities' foray into tokenized RWAs predates the current trend for blockchain-based financial assets issued by institutions. The firm initially focused on niche products like a tokenized bitcoin mining hashrate contract linked to Blockstream, followed by various bond issuances, including the first tokenized U.S. Treasuries offering in El Salvador. This offering brought T-Bill investments to individuals and organizations who were previously unable to access these products.

Jesse Knutson, head of operations at Bitfinex Securities, emphasizes the firm's commitment to bridging the gap between investors and capital-raising entities. Knutson believes that the current tokenization trend, while dominated by fixed income products, often involves the same traditional financial ecosystem. He argues that true disintermediation, which involves removing intermediaries and streamlining processes, is a key aspect of the crypto ethos that institutional players may not fully grasp.

Knutson's perspective highlights the potential for blockchain technology to revolutionize finance by making it more accessible and efficient. By focusing on alternative finance products and leveraging the Liquid Network, Bitfinex Securities aims to provide investors with unique opportunities that align with the original promise of crypto: opening up finance opportunities to anyone.