Yesterday, we joined forces with leading digital assets platform Bitfinex Securities for the launch of ‘Bitcoin Capital,’ a new virtual roundtable series designed to explore the dynamic intersection of blockchain technology and traditional finance. Aimed specifically at demystifying the role of blockchain technology within institutional settings, this monthly event will bring together thought leaders from throughout the world of finance.
Exploring the Future of Global Capital Markets
‘Bitcoin Capital’ promises insightful discussions into how Bitcoin—and in particular Liquid, a Bitcoin layer-2 and sidechain—is helping to reshape the world of asset issuance and investment. The series primarily targets key decision-makers in finance, providing insightful perspectives on how such technology can be leveraged to make financial processes and, therefore, markets, significantly more efficient.
Hosted by Bitfinex Securities Head of Operations Jesse Knutson, the first hour-long session featured legendary cryptographer and Bitcoin pioneer Dr. Adam Back, CEO and co-founder of Blockstream, and Paolo Ardoino, CTO of Bitfinex Securities. Together, they delved into blockchain's transformative potential for a global financial system that has seen little technological evolution in decades. The conversation explored a range of topics, touching on everything from the projected impact of the recent Bitcoin ETF approvals to the role of tokenization in transforming the issuance of traditional financial instruments like securities, bonds and even mortgages.
The inaugural Bitcoin Capital livestream with Blockstream CEO Adam Back and Bitfinex CTO Paolo Ardoino, where together they discuss Bitcoin's impact on the institutional landscape and cover topics such as tokenized bonds, layer-2 solutions, and digital securities.
Revolutionizing Finance through Tokenization
In particular, the conversation highlighted the dual benefits of tokenization for both issuers and investors. For issuers, especially small to medium-sized companies, tokenization has emerged as a less complicated, more cost-effective and transparent path to raising capital, overcoming the traditional barriers of expensive and complex fundraising processes. This democratization of finance grants access to truly global liquidity and provides investors with more equitable access to previously exclusive investment opportunities.
Furthermore, the session covered how countries like El Salvador and Kazakhstan are positioning themselves as pioneers of this digital financial revolution, offering a more agile and forward-thinking approach compared to traditional financial centers such as London, Frankfurt, and New York.
The Liquid Network: A Foundation for Digital Finance
Special focus was given to Liquid, a purpose-built platform for issuing digital assets described by Bitfinex Securities’ Paolo Ardoino as the "most advanced layer for digital assets and tokenized securities." The discussion explored Liquid’s role in compliant digital asset issuance and its future potential, including its ability to employ smart contracts for functions such as trustless limit orders, enhancing transaction security, and efficiency without intermediaries.
Prime examples of Liquid’s real-world impact showcased during the event included the recent Series 2 launch of Blockstream's BASIC Note, a fully EU-compliant, bitcoin-denominated strategic investment vehicle aiming to provide qualified non-US investors with an opportunity to capitalize on historically low prices of Bitcoin mining equipment (ASICs). Another was leading Mexican digital signature platform Mifiel's innovative approach to facilitating credit access for Mexico's beleaguered NBFI sector through the issuance of tokenized promissory notes. A total of over 25,000 such promissory notes valued at over USD $1 billion have been issued to date. A full case study detailing Mifiel’s use of Liquid can be found here.
The success of this inaugural 'Bitcoin Capital' session paves the way for future discussions promising to further bridge the gap between traditional finance and the burgeoning world of blockchain technology. As the series continues, we aim to foster a deeper dialogue on the integration of digital assets into mainstream financial systems, highlighting the ongoing evolution of the financial sector towards a more inclusive and efficient future.
Could not join us live? Catch up on the entire conversation by watching the recording on the Blockstream YouTube channel or on our 𝕏 handle. Meanwhile, to stay informed of upcoming 'Bitcoin Capital' sessions, please register here.
Alternatively, to find out more about the Liquid Network and how it can transform your business, please visit www.liquid.net or reach out to Adolfo Contreras, Head of Business Development at Blockstream for a one-on-one consultation via acontreras@blockstream.com.