CDS Crypto News Bitfinex Tokenizes Debt to Fund El Salvador’s Premier Blockchain-Financed Hotel
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Bitfinex Tokenizes Debt to Fund El Salvador’s Premier Blockchain-Financed Hotel

The initiative is poised to enhance El Salvador's economic landscape by fostering job opportunities and stimulating tourism.

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Bitfinex Tokenizes Debt to Fund El Salvador's Premier Blockchain-Financed Hotel

Crypto NewsBitfinex Securities is launching a tokenized debt offering to finance the development of a new Hampton by Hilton hotel at El Salvador International Airport, as revealed in an April 11 announcement shared with CryptoSlate.

Bitfinex Tokenizes Debt to Fund El Salvador’s Premier Blockchain-Financed Hotel

This tokenized debt offering marks the first of its kind in the Central American nation, aiming to raise $6.25 million. The short-term debt carries a 10% coupon rate over a 5-year period, with a minimum investment of $1000.

As per the announcement, the hotel complex will encompass a 4,484-square-meter facility featuring 80 rooms, five commercial spaces, and various amenities spread across five levels.

Specifics

Bitfinex Securities collaborated with Inversiones Laguardia (HILSV), a well-established entity in El Salvador, to manage the tokenized debt.

On the other hand, Ditobanx is tasked with tokenizing and organizing the transaction, ensuring its issuance on the Liquid blockchain, a Bitcoin layer-2 solution. The token will be traded under the HILSV ticker with two trading pairs: the fiat US Dollar and Tether’s USDT stablecoin. Trading will be exclusively conducted on the Bitfinex Securities platform.

The HILSV token marks the first digital asset tokenisation 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.

Paolo Ardoino

Economic benefit

The initiative is anticipated to create around 1,000 jobs during the construction phase and up to 5,000 direct and indirect jobs throughout the operational stages. The fundraising campaign will begin on May 13, 2024, and is estimated to run for a month.

Furthermore, numerous stakeholders involved in the agreement view it as an opportunity to further bolster El Salvador’s economy.

The recently implemented digital asset laws will grant us access to capital markets that were previously unavailable to us. This access will allow us to develop crucial tourism-related infrastructure, thereby unlocking the potential for growth in the tourism sector. This expansion will ultimately result in economic benefits for every Salvadoran citizen.

Roberto Laguardia
Bitfinex Tokenizes Debt to Fund El Salvador's Premier Blockchain-Financed Hotel

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