Bitfinex Securities Launches El Salvador's First Tokenized Debt for Hilton Hotel Development

Luisa Crawford  Apr 12, 2024 19:46  UTC 11:46

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The first licenced supplier of digital assets in El Salvador, Bitfinex Securities, is spearheading the nation's first tokenized asset raising using the layer 2 Liquid Network of Bitcoin. Bitfinex Securities intends to use a tokenized debt offering in partnership with Inversiones Laguardia S.A. de C.V. to finance the construction of a new Hilton hotel complex at El Salvador International Airport.

Liquid Network's Tokenized Debt Offering

On the Liquid Network, a bitcoin sidechain that facilitates quicker and more scalable transactions, the tokenized debt offering, or HILSV, will be launched. HILSV will be traded in relation to the US currency and tether (USDT), giving investors a chance to contribute to the hotel project's fundraising.

El Salvador International Airport's Hilton Hotel Complex

The construction of a Hampton by Hilton hotel complex at El Salvador International Airport will be funded by the money collected via the tokenized debt issuance. The building proposal will include restaurants, shops, a swimming pool, and 80 rooms spread across 4,484 square metres on five stories. Hilton Hotels is participating as a franchisor, although it is not associated with or responsible for the product.

Advantages for El Salvador's Development of the Capital Market

This innovative programme marks a critical turning point in the growth of El Salvador's capital market. Bitfinex Securities and Inversiones Laguardia are bringing a new asset class to the market by using tokenization and blockchain technology. In addition to giving issuers in areas with restricted access to capital a new source of funding, the tokenized debt offering enables participation from investors who may not otherwise have access to such assets.

Job Creation and Economic Opportunities

Significant economic prospects are anticipated to arise in El Salvador as a result of the building of the Hilton hotel complex. The hotel complex is expected to provide up to 5,000 direct and indirect employment once it is operating, with another 1,000 jobs expected to be created during the building period. This will help the tourist industry expand and strengthen the Salvadoran economy overall.

Image source: Shutterstock

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