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Introduction
Bitfinex Securities has announced a groundbreaking move in El Salvador, launching the country’s first tokenized debt offering to finance the construction of a new Hampton by Hilton hotel at the El Salvador International Airport. This innovative approach, revealed in a statement received by CryptoSlate on April 11, marks a significant milestone in the region’s financial landscape.
Tokenized Debt Offering
The tokenized debt offering, aiming to raise $6.25 million, is a pioneering venture in Central America. This short-term debt initiative features a 10% coupon spread over a 5-year period, with a minimum investment threshold of $1000. The funds raised will facilitate the development of a 4,484-square-meter hotel complex boasting 80 rooms, five commercial spaces, and various amenities distributed over five levels.
Partnership Details
Bitfinex Securities has collaborated with Inversiones Laguardia (HILSV), a prominent entity in El Salvador, to administer the tokenized debt offering. Additionally, Ditobanx is tasked with tokenizing and structuring the transaction, ensuring issuance on the Liquid blockchain – a layer-2 solution built on Bitcoin technology.
The HILSV token will be paired with the US Dollar and Tether’s USDT stablecoin on the Bitfinex Securities platform, enabling seamless trading. This development positions El Salvador as a key player in the digital asset market, catalyzing growth within the region.
Impact on El Salvador
Paolo Ardoino, Bitfinex CTO and Tether CEO, highlighted the significance of this venture, stating that the HILSV token represents a pivotal moment for El Salvador’s capital market. The tokenization of assets ushers in a new era for the country, introducing a major asset class and expanding investment opportunities.
Moreover, this initiative is expected to fuel economic growth by creating up to 1,000 jobs during the construction phase and generating 5,000 direct and indirect employment opportunities post-completion. The capital raise is scheduled to commence on May 13, 2024, with a projected duration of one month.
Roberto Laguardia, President of Inversiones Laguardia, emphasized the transformative potential of this project, citing the impact on El Salvador’s economy. The utilization of digital asset laws provides access to previously untapped capital markets, facilitating infrastructure development in the tourism sector. This expansion is poised to deliver substantial economic benefits to the Salvadoran population.
It is essential to note that Hilton’s involvement in the project is limited to its franchisor role and does not extend to direct operational engagement.
Ultimately, the tokenized debt offering for El Salvador’s inaugural hotel funded via blockchain signals a pivotal moment in the region’s financial evolution, heralding a new era of investment opportunities and economic growth.
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