Capital Raise for Hotel at El Salvador International Airport: Bitfinex Securities Paving the Way
Bitfinex Securities El Salvador S.A. de C.V., a leader in securities token platforms, has launched a groundbreaking tokenized debt issue for the construction of a new Hampton by Hilton hotel complex at El Salvador International Airport. This initiative marks the first tokenised issuance to be organised and traded on Bitfinex Securities El Salvador, following its distinction as the first regulated entity under El Salvador’s Digital Asset Securities Law. The project aims to develop a 4,484 square metre facility, featuring 80 rooms, commercial spaces, and various amenities including a swimming pool and gym.
The tokenised debt, issued by Inversiones Laguardia S.A. de C.V. (HILSV), which has been operational in El Salvador since 2017, seeks to raise $6.25 million. It offers a 10% coupon over a five-year term with a minimum investment threshold of $1,000. Unique to this offering, investors can receive incentives such as free hotel nights, varying with the size of their investment. The HILSV tokens will be issued on the Liquid Network, a sidechain of Bitcoin, which is leveraging Blockstream AMP technology, and will trade against US dollars and Tether tokens.
Paolo Ardoino, CTO of Bitfinex Securities, highlighted the significance of the HILSV token as the first digital asset tokenisation effort from within El Salvador. He emphasised the token’s role in advancing the country’s emerging capital market and introducing a novel asset class. This development opens investment doors to those typically excluded from such markets, while also enabling issuers in capital-restricted regions to access new funding sources.
Jesse Knutson, Head of Operations at Bitfinex Securities, pointed out that this capital raise not only signifies Bitfinex’s inaugural project in El Salvador but also exemplifies the transformative impact of Bitcoin-based capital markets. The initiative is expected to foster significant economic growth in El Salvador by creating substantial employment opportunities, with an estimated 1,000 jobs during construction and up to 5,000 jobs once the hotel becomes operational.
Roberto Laguardia, president of Inversiones Laguardia, noted the critical role of recent digital asset laws in providing new access to capital markets. This access is pivotal for developing essential tourism infrastructure, promising expansive economic benefits across the Salvadoran community. The capital raise, set to begin on May 13, 2024, will run for a month, reflecting a growing trend of new tokenised asset offerings coming to the market such as the recent $5.2 million tokenized bond for Alternative, which is controlled by the microfinance lender Mikro Kapital, and which was issued out of Bitfinex Securities AIFC, its regulated entity in Kazakhstan.
Bitfinex Securities extends the legacy of its parent company, Bitfinex, known since 2012 for its sophisticated digital asset trading and financial tools. The securities arm aims to provide a regulated and efficient global avenue for capital raising through tokenised securities, ensuring broad investor access and participation in innovative financing solutions.
Blockstream’s Liquid Network in Conjunction With Ditobanx Make This Possible
The Liquid Network, a Bitcoin sidechain, plays a crucial role in enabling the tokenised debt offering to build the new Hampton by Hilton hotel complex in El Salvador. This state-of-the-art technology facilitates the issuance of digital assets while maintaining a strong linkage to the Bitcoin blockchain. The use of the Liquid Network ensures enhanced transaction confidentiality and speed, attributes essential for the efficient management of security tokens like HILSV. By leveraging Blockstream AMP, a platform designed for issuing and managing digital assets on the Liquid Network, this initiative not only ensures regulatory compliance and investor security but also enhances the liquidity and interoperability of the tokens.
DitoBanx, El Salvador’s pioneering fintech startup in Bitcoin services, is instrumental in launching this tokenized debt issuance. It has been at the forefront of developing high-transactional software solutions, and since its inception in 2017, DitoBanx has successfully attracted significant investment, reflecting trust and confidence in its innovative approach. With El Salvador establishing itself as a significant player in the Bitcoin arena through supportive legislation, DitoBanx’s role in this project underpins the country’s commitment to leveraging digital assets for economic development.
The involvement of DitoBanx in this tokenised debt issuance is a testament to its capabilities and growth trajectory as it aims to connect thousands of people to new opportunities through quality digital products based on Bitcoin. The company’s expertise in highly transactional environments is critical in managing the complexities of tokenised securities, ensuring that the issuance on the Liquid Network is executed flawlessly. DitoBanx’s commitment to innovation and financial inclusion perfectly aligns with the goals of the tokenised debt offering, aiming to broaden investor participation and fund significant infrastructure development.
This collaboration highlights a significant stride in financial technology, combining the strengths of Bitfinex Securities’ platform, the technological advantages of the Liquid Network, and the local insight and operational excellence of DitoBanx. Together, these elements illustrate a pioneering approach to capital raising and economic development in El Salvador, setting a precedent for future projects in the region and potentially globally. As the project progresses, it promises not only to enhance El Salvador’s tourism infrastructure but also to solidify its position as a leader in the integration of cryptocurrency and traditional financial markets.
This Offering is the First Of Several in the Bitfinex Securities Pipeline
This initial tokenised debt offering for the Hampton by Hilton hotel complex at El Salvador International Airport marks a significant milestone as it is the first of its kind in El Salvador. This project is set to launch under the auspices of El Salvador’s progressive Digital Asset Securities Law, which has positioned the country as a new epicentre and hub for digital finance innovations. The successful launch and execution of this tokenised issuance are expected to catalyse a series of similar initiatives, with Bitfinex Securities already hinting at a substantial pipeline of tokenised assets scheduled to hit the market in the coming months.
This initiative follows closely on the heels of another successful tokenised issuance through Bitfinex Securities, which facilitated an offering with Mikro Kapital, through an issuing vehicle called Alternative. That issue, which also leveraged Liquid Network’s sidechain technology for securities issuance, underscored Bitfinex Securities’ capabilities and expertise in navigating the digital assets landscape. The success of the Mikro Kapital bond offering has bolstered confidence among investors and market observers, setting a robust foundation for the introduction of more complex instruments like the HILSV token.
The Bitfinex Securities platform is becoming increasingly recognised for its role in transforming traditional financial mechanisms through the integration of blockchain technology. By offering these innovative financial products, Bitfinex not only broadens the spectrum of investment opportunities available but also enhances El Salvador’s standing as a leader in the adoption and integration of cryptocurrency into mainstream financial structures.
Looking forward, the implications of these developments are vast. As Bitfinex Securities continues to unveil more tokenised projects, each success adds layers of credibility and stability to El Salvador’s capital markets, attracting both local and international investors. These projects not only promise to inject vital capital into key sectors such as tourism and infrastructure but also pave the way for a new era of financial inclusivity and innovation in the region. With each new issuance, Bitfinex Securities is helping to write a new chapter in the economic narrative of El Salvador and potentially setting a replicable model for other nations to follow.
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