Bitfinex Securities Launches RWA Tokens in UK, Targeting Underserved Markets

Bitfinex Securities launched two blockchain-based asset products in the United Kingdom. Investors can now buy tokens backed by subordinate debt from Castle Community Bank in Scotland and litigation financing for mis-sold car finance claims across the UK.

Bitfinex Securities Real-World Asset Offerings

The first product, TITAN1, invests £5 million to support lending at Castle Community Bank, which serves financially excluded customers in Edinburgh. Investors receive a net 20% annual dividend paid quarterly over a maximum ten-year term. The debt cannot be called back for the first five years.

The second product, TITAN2, represents equity in a £100 million tokenized fund structured as a Guernsey Protected Cell Company. It finances litigation related to mis-sold car finance claims across the UK and offers token holders 50% of any net recovery proceeds. The market for these claims could generate billions in consumer compensation. 

Both products are issued as tradable tokens on the Liquid Network, a Bitcoin sidechain developed by Blockstream. Token transfers require issuer authorization and participants must be whitelisted to meet compliance and jurisdictional standards.

Bitfinex’s Broader Strategy for Tokenized Finance

Jesse Knutson, head of operations at Bitfinex Securities, said the company wants to help people bridge the gap to investors and fill the void left by banks in many parts of the world that just aren't willing to lend, or where people struggle to get access to capital.

When you look at the details of what they've actually done, it's typically left hand to right hand. It's the same kind of people. It's going through depositories, it's going through transfer payment agents, all of the normal kind of parts of the traditional ecosystem, which I don't think are technologically probably necessary.

Major asset managers like BlackRock and Franklin Templeton have recently issued tokenized money market funds worth millions of dollars. Bitfinex Securities began experimenting with smaller-scale tokenized assets years earlier. 

The company previously issued a Bitcoin mining hashrate contract with Blockstream and created tokenized U.S. Treasuries in El Salvador to open T-Bill investments to a broader audience.

The UK expansion shows Bitfinex Securities' strategy of using blockchain technology to create alternative finance products that traditional institutions often overlook.