El Salvador Takes Another Bold Step Towards Blockchain Adoption

Investors will soon have the opportunity to own a portion of a new Hampton by Hilton hotel in El Salvador through tokenized shares issued on the Bitcoin layer 2 Liquid Network. 

Bitfinex Securities, the first licensed digital asset provider in El Salvador, will facilitate the country’s inaugural tokenized asset raise in partnership with Inversiones Laguardia S.A. de C.V.

El Salvador Moves Towards Blockchain Adoption

The hotel, located at El Salvador’s international airport, aims to raise $6.25 million from crowdfunders in exchange for a 10% coupon over a 5-year term. 

Paolo Ardoino, Chief Technology Officer of Bitfinex Securities, emphasized the significance of this initiative in developing El Salvador’s capital market and introducing a new asset class to investors.

“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,” said Ardoino.

Ticker HILSV

Investors can participate by purchasing tokens under the ticker HILSV on the Liquid Network, with a minimum investment of $1,000. Liquid Network, developed by Blockstream in 2018, provides a Bitcoin-focused infrastructure for asset issuance and transfer.

The Hampton by Hilton hotel project will feature 80 rooms across five levels, along with various amenities such as swimming pools, restaurants, gyms, and multipurpose rooms. Token holders will also receive complimentary accommodation at the hotel based on their investment size.

El Salvador and Real-World Tokenization

El Salvador’s venture into real-world asset tokenization aligns with its embrace of Bitcoin, which gained momentum with the country’s decision to grant Bitfinex a digital asset service provider license in April 2023. This move reflects a shift in investment opportunities for locals, moving beyond traditional options like real estate purchases.

“This capital raise not only marks our first venture in El Salvador but also stands as a testament to the transformative power of Bitcoin-based capital markets. We are proud to contribute to El Salvador’s growth and look forward to creating significant employment opportunities through this endeavour,” said Jesse Knutson, Head of Operations at Bitfinex Securities.

Bitcoin commentator Stacy Herbert sees this initiative as a milestone in El Salvador’s capital markets, offering the local population new avenues for financial participation. Jesse Knutson, Head of Operations at Bitfinex Securities, views the capital raise as a testament to the transformative potential of Bitcoin-based capital markets, marking Bitfinex’s first venture in El Salvador.