NexBridge Completes $30 Million Offering of Tokenized US Treasury Bills
On December 4, NexBridge, an El Salvador-based digital asset issuer, closed its $30 million offering of United States Treasury bill-backed tokens (USTBL). This marks the first regulated public offering of tokenized US Treasuries, providing investors access to government-backed securities via blockchain technology.
The $30 million deal was facilitated by Bitfinex Securities, a platform under Tether, the issuer of the largest stablecoin, #USDT. The offering launched on November 19, aimed to enhance liquidity and efficiency compared to traditional securities while expanding access to US Treasury bills for global investors.
A Unique Offering Built on Bitcoin Technology
USTBL utilizes the Bitcoin blockchain through the Liquid Network, a layer-2 protocol designed for faster, secure transactions. This integration combines the reliability of US Treasury bills with blockchain advantages, such as quicker settlement times and increased liquidity.
Blockchain technology improves USTBL’s liquidity, facilitating easier buying and selling of these traditionally less liquid assets.
Michele Crivelli, founder of NexBridge, highlighted the innovation's potential for investors:
“We are offering a traditional financial product, US Treasuries, through a digital framework that makes it more accessible and efficient for global investors,” Crivelli said.
Fully Regulated and Compliant with El Salvador's Laws
NexBridge confirmed that USTBL complies with El Salvador’s digital asset laws. The country has a clear regulatory framework for tokenized financial assets due to its crypto-friendly stance.
Crivelli noted that regulatory compliance enhances security: “By complying with El Salvador’s regulations, we ensure that USTBL is a fully compliant digital asset while also offering investors the advantages of blockchain’s decentralized nature.”
A Flexible Redemption Process for Investors
USTBL is currently available for trading on secondary markets, with redemption options set to begin in March 2025. Crivelli indicated plans for dynamic redemptions, allowing investors better management of their holdings.
“We plan to offer multiple redemption mechanisms,” he stated. “The first will be through the exchanges where USTBL is available, but we also plan to offer dynamic redemptions that allow for real-time access to liquidity.”
Following the initial $30 million offering, NexBridge aims to issue up to $200 million in tokenized US Treasury securities, granting investors proportional shares of the assets under management.
This offering aligns with growing interest in tokenized US Treasury bills within the digital asset sector. Major firms like BlackRock and Franklin Templeton have entered the market with their own tokenized Treasury products. Notably, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) has already accumulated over $447 million in assets.