El Salvador took a decisive step in tokenization on Tuesday, unveiling national investment opportunities based on Bitcoin infrastructure.
El Salvador Bitcoin: investing in development
The country’s National Bitcoin Office launched its blockchain-based capital raise on the Liquid network.
Bitcoin-based capital markets have officially launched in El Salvador, the first country to adopt Bitcoin. Congratulations to ONBTC and @BFXSecurities on this historic milestone! https://t.co/6SCPvjiunx
— Liquid Network 🌊 (@Liquid_BTC) May 15, 2024
Liquid is a Bitcoin sidechain operated by Blockstream and a federation of 65 Bitcoin-focused companies worldwide. By using BTC as its own asset, the blockchain facilitates faster, cheaper, and more private transactions than the main Bitcoin blockchain.
In addition to BTC, Liquid enables the issuance of tokens representing various assets, including stablecoins such as Tether (USDT), meme coins, and real assets and securities.
One of El Salvador’s symbolic offers involves investing in the construction of the first hotel at El Salvador’s international airport. The investment would return 10% annually over five years, requiring a minimum investment of $1,000.
“The infrastructure will include 80 rooms, five commercial spaces of 99 square meters each, a swimming pool and various amenities such as restaurants, a gym, gardens and multi-functional areas, among others,” according to the offer on the Inverlag Hotels website.
Tokenized offers on the Liquid Network
Investors could also get free nights at the hotel they help build. Anyone who invests $1 million will receive a year-round free stay for the five-year term of the bond.
“These capabilities are generally not available to the general public,” Roberto Laguardia, CEO of Inverlag, explained in an interview. “They are usually reserved for large-scale or institutional investors and private equity firms… However, with a minimum investment of $1,000, individuals can access a 10% interest rate, paid semiannually, over a five-year period.”
The tokenized issuance was carried out by Bitcoin startup DitoBanx from El Salvador, while the exchange platform used to issue the tokens is Bitfinex. Due to regulations, the investment is not available to US investors.
Benefits of tokenized investments
El Salvador is the first and only country in the world to treat El Salvador Bitcoin as legal tender alongside the US dollar. The state regularly invests in BTC and runs a Bitcoin mining operation powered by geothermal energy from the region’s local volcanoes.
El Salvador’s embrace of Bitcoin goes beyond legal tender status, as this new tokenized investment offering demonstrates. The Bitcoin Office said this week that the country has mined 474 BTC since 2021 and now holds a total of 5,750 BTC ($378 million).
