Bitfinex Securities on Tuesday listed five tokenized products linked to bitcoin treasury companies, giving eligible investors exposure to Strategy, Metaplanet, H100 Group and Capital B through equity-backed notes.
The regulated trading platform said no regulated tokenized securities exchange had previously offered secondary trading in tokenized versions of securities issued by bitcoin treasury companies.
How the five notes are structured
Four of the notes are backed by 100 shares each of the underlying company. CMSTR is backed by Strategy’s Class A common stock, CMTPL by Metaplanet, CH100 by H100 Group and CALCPB by Capital B.
The fifth product, STRCst, is backed one for one by a share of Strategy’s Variable Rate Series A Perpetual Preferred Stock. That preferred stock pays a 12% annual dividend in cash twice a month.
The notes are issued by ORO (II), a Luxembourg umbrella securitization fund managed by SICOS Securities. Each product is issued from its own ring-fenced compartment within the fund. STOKR is the technology provider.
The underlying equity is held in custody at regulated financial institutions, and note holders do not own the shares directly. STRCst holders also do not receive the cash dividend themselves.
Bitfinex Securities said Strategy pays the dividend to the issuer. The issuer deducts a payout fee of up to 5%, uses the rest to buy more STRC, and then distributes additional notes to holders in proportion to their holdings. The yield is delivered as more tokens.
Trading and regulatory setup
The direct listings were approved by El Salvador’s Comisión Nacional de Activos Digitales, while ORO (II) is governed under Luxembourg’s 2004 securitization law.
The notes are issued on the Liquid Network, a bitcoin sidechain. They trade against U.S. dollars, Tether’s USDt and bitcoin, and can be traded in fractional units to four decimal places.
Secondary trading is open to eligible members of Bitfinex Securities. Wallets must be approved under the platform’s know-your-customer and anti-money-laundering rules before they can send or receive the tokens. U.S. persons are excluded.
What Bitfinex Securities said comes next
In the release announcing the listings, Bitfinex Securities said security tokenization has so far been dominated by fixed-income, buy-and-hold products. It said bringing more equity products to market is an important step in developing secondary-market liquidity for tokenized securities.
The company said the new listings bring the platform to 12 tokenized investment products across 27 trading pairs, with total assets on the platform now above $500 million.
Its pipeline includes a tokenized gold fund generating yield through a carry trade, bitcoin mining private credit notes and a tokenized U.S. money market fund.