Bitfinex Securities El Salvador S.A. de C.V., a tokenized securities platform, is spearheading an initiative to fund the development of a Hampton by Hilton hotel complex at El Salvador International Airport through a tokenized debt issue.
The token, known as HILSV, will trade against the U.S. dollar and tether (USDT) and will be issued on the Liquid Network, a bitcoin sidechain, as outlined in a recent press release.
HILSV Tokenized Debt Offering Marks Milestone in El Salvador’s Capital Market Development
Bitfinex Securities to facilitate first ever El Salvador tokenised asset raise – $6.25m tokenised digital asset for new hotel at El Salvador International Airport.
Explore investment opportunities with HILSV tokens on Bitfinex Securities.
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— Bitfinex Securities (@BFXSecurities) April 11, 2024
Bitfinex Securities has partnered with Inversiones Laguardia (HILSV), a reputable entity in El Salvador, to manage the tokenized debt. Ditobanx, on the other hand, will handle the tokenization and structuring of the transaction, ensuring issuance on the Liquid blockchain—a Bitcoin layer-2 solution.
Announced on April 11, HILSV represents the first of its kind in the region, seeking to raise $6.25 million. The tokenized debt issuance will offer a 10% coupon over a five-year period, with a minimum investment threshold of $1,000. The issuance will be facilitated by Inversiones Laguardia S.A. de C.V.
The funds raised will be used to develop the 4,484-square-meter hotel complex, which features 80 rooms, five commercial spaces, a swimming pool, restaurants, and various amenities spread across five levels. It’s important to note that while Hilton Hotels is involved as a franchisor, it does not endorse any offering and bears no responsibility, according to the press release.
Despite Hilton’s involvement limited to that of a franchisor, the initiative is poised to create significant economic opportunities. The project is expected to generate around 1,000 jobs during construction and up to 5,000 direct and indirect jobs once operational.
“The HILSV token marks the first digital asset tokenization from El Salvador and represents an important step forward in developing its nascent capital market as well as introducing a major new asset class into the market,” Bitfinex Securities CTO Paolo Ardoinio said in a statement.
Ardoinio added,
“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 that have less access to capital are able to tap into a new asset class to raise finance.”
Roberto Laguardia, President of Inversiones Laguardia, highlighted the transformative potential of the project, leveraging recently implemented digital asset laws to access previously unavailable capital markets. Laguardia stated that this will in turn enable the development of vital tourism-related infrastructure, ultimately fueling economic growth and benefiting every Salvadoran citizen.
Bitfinex Securities Granted First License for Operation in El Salvador
In January, Bitfinex Securities made history by becoming the inaugural regulated entity to obtain a license for operation in El Salvador under the nation’s recently enacted Digital Asset Securities Law. This landmark development comes amidst growing anticipation for regulated investment avenues, particularly in the wake of the successful introduction of U.S. spot bitcoin exchange-traded funds.
Upon receiving the license, the tokenized securities platform wasted no time and immediately began accepting customer applications. Furthermore, it announced the establishment of a robust pipeline comprising potential financial asset issuances slated to debut in the first half of this year.
This initiative follows the success of a tokenized bond offering by Alternative via Bitfinex Securities AIFC in Kazakhstan in November, which raised over $5.2 million in USDT on the Liquid Network. To access all Bitfinex Securities issuances, customers must be verified with both its Kazakhstan and El Salvador entities.
El Salvador has been at the forefront of crypto adoption, granting Bitcoin legal tender status in 2021 and launching the “Adopting El Salvador Freedom Visa” program in collaboration with stablecoin issuer Tether. This program allows investors to apply for the Freedom Visa by investing $1 million in Bitcoin, or USDT.
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