Investors will soon have the opportunity to own a portion of a brand-new Hampton by Hilton hotel in El Salvador. This will be made possible through the purchase of tokenized shares on the Bitcoin layer 2 Liquid Network. Bitfinex Securities, the first licensed and registered digital asset provider in El Salvador, will facilitate the country’s first-ever tokenized asset raise. The debt will be issued by Inversiones Laguardia S.A. de C.V.
The hotel, which will be located at El Salvador’s international airport, aims to raise $6.25 million from crowdfunders. In exchange for their investment, participants will receive a 10% coupon over a 5-year term. The minimum investment required to purchase the token, known as HILSV, on the Liquid Network is $1,000.
The construction of the hotel will consist of five levels and include 80 rooms, five commercial spaces, a swimming pool, restaurants, a gym, gardens, and multipurpose rooms. HILSV token holders will also be entitled to complimentary nights at the hotel based on the size of their investment.
This move represents a significant milestone for El Salvador’s capital market and introduces a new asset class into the country’s financial landscape. Paolo Ardoino, Chief Technology Officer of Bitfinex Securities, expressed the importance of this development in the growth of El Salvador’s capital market.
El Salvador has gained recognition for its forward-thinking approach to Bitcoin investment and adoption. In April 2023, Bitfinex was granted a digital asset service provider license, allowing the expansion into real-world asset tokenization. This expansion opens up new opportunities for the local population to access financial markets, offering a bridge between no investments and the purchase of an entire house.
Jesse Knutson, Head of Operations at Bitfinex Securities, sees this capital raise as a testament to the transformative power of Bitcoin-based capital markets. It not only marks Bitfinex’s first venture in El Salvador but also signals the beginning of a new era of capital markets in the country.
Overall, this initiative showcases the potential of tokenization and highlights the innovative capabilities of the Bitcoin network in revolutionizing traditional financial systems.