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Bitfinex Securities fee rule raises cost hurdles for tokenized bonds
An example $5 million, one-year tokenized bond carries a $100,000 issuer fee, equivalent to 2% upfront.
CryptoSlate reports Bitfinex Securities is testing an early claim that tokenized securities can cut capital raising costs, after its published fee structure made a $5 million, one-year bond example cost $100,000 in issuer fees, or 2% of the raise upfront.
The outlet says Bitfinex Securities is a platform for raising capital through tokenized securities and that a Oct. 5 Bitfinex account outlined Bitfinex CTO Paolo Ardoino's five-year benchmark for the tokenization industry.
CryptoSlate notes Ardoino’s goal is to reduce companies' capital raising costs by 80%, but the economics of minimum charges could limit adoption for businesses outside established financial centers unless they either raise enough capital to spread fees or use intermediaries that pool financing.
The report points to ALTERNATIVE, a Luxembourg securitization fund, as an example of the pooling route, citing bond records showing completed funding and repayments while saying the effect on borrowers' loan pricing remains unclear.