El Salvador’s embrace of digital assets takes a new step forward with the launch of a tokenized debt offering to finance a Hampton by Hilton hotel complex at the country’s international airport. This innovative project, spearheaded by Bitfinex Securities El Salvador S.A. de C.V., marks a significant milestone for the nation’s growing digital asset market.
First Mover Advantage
Bitfinex Securities, the first licensed entity under El Salvador’s Digital Asset Securities Law, is facilitating this groundbreaking debt issuance. Established in January 2024, the platform anticipated a surge in demand for regulated digital investment vehicles, mirroring the success of U.S. spot Bitcoin ETFs. This tokenized debt offering, issued by El Salvadorian firm Inversiones Laguardia S.A. de C.V., is poised to become the first security traded on the platform.
Democratizing Investments and Bolstering Growth
The HILSV token, built on the Bitcoin sidechain Liquid Network, offers investors a unique opportunity. “This tokenization unlocks investment opportunities for those previously excluded,” says Paolo Ardoinio, CTO of Bitfinex Securities. “Issuers in capital-restricted markets can now tap into a new source of financing.”
The offering aims to raise $6.25 million, with a 10% annual coupon over five years. This translates to an annual interest payment of 10% on the investment, followed by the return of the principal amount at the end of the term. With a minimum investment of $1,000 and a launch date set for May 13th, 2024, HILSV offers a compelling opportunity for a broad range of investors.
Beyond financial benefits, the project is projected to create 1,000 jobs during construction and up to 5,000 jobs upon completion. “The new digital asset laws open doors to previously inaccessible capital markets,” states Roberto Laguardia, President of Inversiones Laguardia. “This access fuels the development of critical tourism infrastructure, unlocking El Salvador’s tourism potential.”
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Building on a Digital Foundation
This project follows the success of a $5.2 million tokenized bond offering by Alternative via Bitfinex Securities AIFC in Kazakhstan. Investors seeking to participate in Bitfinex Securities’ offerings must complete verification processes with both their El Salvador and Kazakhstan entities.
El Salvador’s progressive stance on digital assets continues to make headlines. Following the adoption of Bitcoin as legal tender in 2021, the country collaborated with Tether to launch the “Adopting El Salvador Freedom Visa” program in December 2023. This program offers residency to investors who commit $1 million in Bitcoin or USDT.
The tokenized debt offering for the new Hilton hotel complex signifies El Salvador’s commitment to fostering innovation and leveraging digital assets to fuel economic growth and development. This project is likely to be closely watched by the global financial community, with the potential to serve as a model for other nations seeking to integrate blockchain technology into their economies.
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