A tokenized debt issue has been started by a Bitfinex organization in El Salvador to finance the building of a new "Hampton by Hilton" hotel at El Salvador International Airport. The country's Digital Asset Securities Law will enable the endeavor, which is a first for Bitfinex Securities in El Salvador. Commencing on May 13, 2024, the capital raising is anticipated to last for one month.
A tokenized debt issue has been started by a Bitfinex organization in El Salvador to finance the building of a new "Hampton by Hilton" hotel at El Salvador International Airport.(Photo : by MARVIN RECINOS/AFP via Getty Images)
Partnership and Tokenized Debt Initiative in El Salvador
To handle the tokenized debt, Bitfinex Securities has teamed up with Inversiones Laguardia (HILSV), a respectable company in El Salvador. In contrast, Ditobanx will take care of the transaction's tokenization and structure, guaranteeing its issuance on the Liquid blockchainâ€"a layer-2 Bitcoin solution.
HILSV, which was announced on April 11 and aims to generate $6.25 million, is the first of its sort in the area. The tokenized debt issue will have a $1,000 minimum investment requirement and a 10% coupon over a five-year term. It will be made possible by Inversiones Laguardia S.A. de C.V.
The hotel will be 4,484 square meters in size and have 80 rooms, business areas, and recreational features including a gym and pool. Los Angeles Inversiones S.A. de C.V. intends to generate $6.25 million over five years with a 10% yield. The HILSV tokens will be distributed on the Liquid Network and will be exchangeable for US dollars and the stablecoin Tether USD (USDT).
In the announcement, Bitfinex stated that it will create up to 5,000 direct and indirect employment throughout its operating period, in addition to about 1,000 jobs during the building phase.
President of Inversiones Laguardia Roberto Laguardia emphasized the project's revolutionary potential, utilizing recently enacted rules pertaining to digital assets to gain access to finance markets that were previously inaccessible. According to Laguardia, this would eventually allow for the construction of infrastructure connected to tourism, which will boost economic growth and benefit all Salvadorans.
Bitfinex Securities Receives First El Salvador Operational License
As the first regulated company to be granted a license to operate in El Salvador under the newly passed Digital Asset Securities Law, Bitfinex Securities made history in January. This historic move coincides with rising expectations for regulated investment opportunities, especially after the successful launch of U.S. spot bitcoin exchange-traded funds.
The tokenized securities platform wasted no time in accepting user applications after obtaining the license. In addition, it declared the creation of a strong pipeline with prospective financial asset offerings scheduled to launch in the first half of this year.
This program comes after Alternative's November tokenized bond sale through Bitfinex Securities AIFC in Kazakhstan was a success, raising approximately $5.2 million in USDT on the Liquid Network. Customers must be validated with Bitfinex's businesses in El Salvador and Kazakhstan in order to access any Bitfinex Securities issuances.
El Salvador has been in the forefront of the acceptance of cryptocurrencies, having launched the "Adopting El Salvador Freedom Visa" campaign in association with stablecoin issuer Tether and granted Bitcoin legal currency status in 2021. Through this scheme, investors can deposit $1 million in Bitcoin, or USDT, in order to apply for a Freedom Visa.
A Strong Commitment to El Salvador Crypto
El Salvador keeps expanding its involvement with the digital currency market, especially bitcoin (BTC), in a sequence of calculated actions highlighting its dedication to cryptocurrencies. El Salvador's President Nayib Bukele recently declared that the country will purchase one bitcoin every day, but to do so until buying bitcoin with fiat money becomes prohibitive. Thanks to this endeavor, the country now possesses a large total of 5,690 BTC, estimated to be worth $400 million.
El Salvador has eliminated income tax on foreign investments and money transfers, making a strong statement in the global financial scene in tandem with its El Salvador crypto ambitions. This 30% tax decrease to 0% is intended to draw in foreign capital and accelerate economic expansion.
This week, the nation's dedication to bitcoin was further demonstrated when it moved more than 5,000 BTC into a cold wallet. President Bukele said that a sizable quantity of these assetsâ€"worth $400 million in bitcoinâ€"have been transferred to an offline device kept in a real vault on the country's territory. A major step forward in El Salvador's crypto financial strategy, this effort to protect the digital assets in a "Bitcoin piggy bank" offers increased security and demonstrates great trust in the future of El Salvador crypto.
