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Bitfinex issues tokenized debt for El Salvador’s first hotel funded via blockchain
The initiative is expected to improve El Salvador's economic situation by creating job opportunities and boost tourism.
2 min read
Updated: Apr. 11, 2024 at 11:28 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitfinex Securities is issuing a tokenized debt offering to fund the construction of a new Hampton by Hilton hotel at El Salvador International Airport, according to an April 11 statement shared with CryptoSlate.
The tokenized debt offering is the first of its kind in the Central American country, seeking to raise $6.25 million. The short-term debt has a 10% coupon over a 5-year term, and the minimum investment is $1000.
According to the statement, the hotel complex will be a 4,484-square-meter facility with 80 rooms, five commercial spaces, and other amenities across five levels.
Details
Bitfinex Securities partnered with Inversiones Laguardia (HILSV), an established entity in El Salvador, to oversee the tokenized debt.
Meanwhile, Ditobanx is responsible for tokenizing and structuring the transaction and ensuring that it is issued on the Liquid blockchain, a Bitcoin layer-2 solution. The token will trade under the HILSV ticker with two trading pairs, including the fiat US Dollar and Tether’s USDT stablecoin. Trading will occur exclusively on the Bitfinex Securities platform.
Paolo Ardoino, Bitfinex CTO and Tether CEO, said:
“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.”
Notably, Hilton’s role in this arrangement is limited to that of a franchisor and does not entail direct involvement.
‘Economic benefit’
The initiative is expected to generate approximately 1,000 jobs during construction and up to 5,000 direct and indirect jobs during operational phases. The capital raise will commence on May 13, 2024, and is projected to last a month.
Meanwhile, several stakeholders in the deal believe that the deal presents an opportunity to develop El Salvador’s economy further.
Roberto Laguardia, the president of Inversiones Laguardia, explained:
“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.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Bitfinex
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Paolo Ardoino joined Bitfinex at the beginning of 2015 and now serves as Chief Technology Officer.
Nayib Armando Bukele Ortez is a Salvadoran politician and businessman who is the 46th and current President of El Salvador.