Tokenized US Treasury Bills on Bitcoin’s Liquid Network: NexBridge Launches ‘First Regulated Public Offering’

NexBridge, a digital asset issuer specializing in the tokenization of financial assets, has launched USTBL in El Salvador, which it describes as “the first regulated offering of tokenized US Treasury exposure built on Bitcoin technology.”

According to the press release shared with Cryptonews, this move will give investors access to US Treasury returns and will do so through a regulated digital asset structure.

Bitfinex Securities will list the asset with an initial soft cap offering of $30 million. This is the first platform to receive a Digital Asset License under El Salvador’s 2023 securities law, the announcement noted.

According to Jesse Knutson, Head of Operations at Bitfinex Securities, “this issuance represents a significant step forward in financial technology by merging the security of government-backed securities with the adaptability and efficiency of digital assets.”

The fund’s hard cap is $200 million, “which will likely get hit very quickly,” the email said.

Furthermore, USTBL will operate under El Salvador’s Digital Asset Law, making it a fully compliant digital asset, the team said.

"El Salvador is not only making tokenisation easy but also talking to other countries about how to embrace this new technology."

Issuing tokenized securities in El Salvador panel at @LuganoPlanB pic.twitter.com/yoBfszPeqV

— Bitfinex Securities (@BFXSecurities) October 25, 2024

It also argued that the Treasury Bill tokenization has been explored before but that this is “the first on-chain, regulated public offering” that aims to set standardized rules for issuers.

These rules, it continued, would ensure interoperability and compliance across exchanges and jurisdictions.

“We are establishing a new standard for how financial markets can operate in the digital age,” said NexBridge Founder Michele Crivelli.

“By leveraging Bitcoin’s technology and infrastructure, we’re laying the foundation for a globally accessible financial ecosystem, bringing tokenized U.S. Treasuries to investors worldwide while maintaining full regulatory compliance,” he said.

Built on Liquid Network

USTBL is built on Bitcoin’s Liquid Network, a sidechain of the Bitcoin blockchain and a layer-2 solution specializing in digital asset issuances (securities, bonds, and stablecoins), supporting various tokenized assets.

Its technical provider is the well-known digital asset infrastructure firm Blockstream.

The team said it’s utilizing Blockstream’s Asset Management Platform (AMP), issuance, and management.

This enables standardized compliance rules across jurisdictions while maintaining Bitcoin’s security and transparency.

Furthermore, according to the press release,

“The upcoming issuance of USTBL is anticipated to increase the total value of real-world assets (RWAs) on the network to over $2 billion, representing more than 15% of the entire blockchain-based RWA market.”

Bitcoin’s unmatched security and programmability are shaping the future of capital markets. In his op-ed for @blockworks, @KnutsonJesse explains why #Bitcoin represents the best solution to confidentiality and scaleability for future tokenisation.

👉 https://t.co/JJsaGyH9b1 pic.twitter.com/1JD6zm6rJg

— Bitfinex Securities (@BFXSecurities) October 23, 2024

Meanwhile, NexBridge has joined the Liquid Federation. This is a group of over 70 Bitcoin companies and exchanges that govern the Liquid Network.

Adam Back, CEO of Blockstream, commented that “by using Blockstream’s AMP technology on the Liquid Network, NexBridge is advancing a more open and interconnected financial ecosystem and accelerating the adoption of blockchain-based financial infrastructure on a global scale.”

USTBL addresses two primary challenges in TradFi: accessibility and cost.

This Bitcoin tech, said the announcement, decreases reliance on intermediaries, associated fees, and entry fees.

This way, investors from various backgrounds will be able to gain US Treasury exposure without the complexity of multiple intermediaries and their fees, including custodian banks, paying agents, asset managers, and trading venues.

Our issuances provide efficient & transparent access to a new capital market, leveraging cutting-edge blockchain technology. In a regulated environment accessible from anywhere in the world, NexBridge paves the way for a future where capital markets are more accessible than ever. pic.twitter.com/ODGnU0Cq3b

— NexBridge (@NexBridgeSV) August 28, 2024

Per Nicolas Cane, CEO of NexBridge, “traditional finance is ready to embrace blockchain, but they need standards and interoperability, not fragmentation.”

“By building on Bitcoin’s technology through the Liquid Network, we’re creating a unified standard that enables seamless movement of assets between jurisdictions and exchanges,” Cane said.