El Salvador taps Bitfinex for its first tokenised asset sale raising $6.25 million

2024-4-13 13:28

El Salvador has launched a tokenised share sale in partnership with Bitfinex Securities to enable investors to own a piece of its new 4,500-square-foot Hampton by Hilton Hotel, which will be built at El Salvador’s international airport.

The sale is El Salvador’s first tokenised asset raise, with the debt issued by Inversiones Laguardia S.A. de C.V. in collaboration with Bitfinex, the first licensed and registered digital asset provider in El Salvador.

The tokenised share issuance aims to generate $6.25 million. Investors will be required to invest a minimum of $1,000 to purchase a token under the ticker symbol HILSV issued on the Liquid Network for a 10% coupon over a 5-year term. In an announcement on Thursday, Bitfinex CTO Paolo Ardoino said:

For the first time, investors who do not usually have the opportunity to invest in such assets have the opportunity to do so, while issuers in markets which have less access to capital, are able to tap into a new asset class to raise finance.

The hotel complex will comprise five levels, 80 rooms, five commercial spaces and hotel amenities, such as restaurants, a gym, a garden, a swimming pool, and multipurpose rooms. HILSV holders will be entitled to free night accommodations at the hotel, depending on the size of their investment. HILSV will be traded against Tether tokens and U.S. dollars.

Tokenised share sale marks a new era of capital markets

El Selvador’s move comes after the country passed the Digital Assets Law in November 2022. The law introduced several new rules for digital asset providers that align with the traditional mandates for financial institutions.

Commenting on the tokenised asset sale, Inversiones Laguardia president Roberto Laguardia said the newly passed digital asset laws grant access to capital markets that were previously inaccessible. Bitfinex Head of Operations Jesse Knutson lauds the tokenised sale as a clear example of the transformative power of Bitcoin-based capital markets.

El Salvador made history in November 2021 after making Bitcoin a legal tender. This was amidst warnings by international organisations such as the International Monetary Fund (IMF) over the risks posed by cryptocurrencies. Since then, this Central American country has been purchasing Bitcoins and is currently believed to own over 2,700 BTCs.

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