tl;dr
El Salvador is at the forefront of integrating blockchain technology into traditional sectors through a groundbreaking tokenized debt issue for a new hotel at El Salvador International Airport. With a minimum investment of $1,000, Bitfinex Securities leads the initiative to raise $6.25 million throu...
El Salvador is at the forefront of integrating blockchain technology into traditional sectors through a groundbreaking tokenized debt issue for a new hotel at El Salvador International Airport. With a minimum investment of $1,000, Bitfinex Securities leads the initiative to raise $6.25 million through tokens issued by Inversiones Laguardia S.A. de C.V. The project aims to create employment opportunities and trade against US dollars and Tether’s USDT on the Liquid Network. Simultaneously, the tokenization of real-world assets is gaining momentum globally, as exemplified by Circle’s introduction of a smart contract for the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), showcasing the vast potential of blockchain technology. El Salvador is pioneering the integration of blockchain technology into traditional sectors by launching a tokenized debt issue. This initiative will fund the construction of a new hotel at El Salvador International Airport. The facility will span 4,484 square meters, featuring 80 rooms, five commercial spaces, and various amenities, including a pool, restaurants, a gym, gardens, and multipurpose rooms.
Bitfinex Securities, the first regulated entity under El Salvador’s Digital Asset Securities Law, leads this venture. They plan to finance the hotel project through tokens issued by a developer – Inversiones Laguardia S.A. de C.V. (HILSV), aiming to raise $6.25 million. These tokens offer a 10% coupon over five years, with a minimum investment of $1,000. Additionally, investors can receive free hotel accommodations based on the size of their investment.
The HILSV tokens would trade against US dollars and Tether’s USDT on the Liquid Network, a Bitcoin sidechain. Paolo Ardoino, CTO of Bitfinex Securities, emphasized the project’s importance.
This development has the potential to catalyze El Salvador’s capital market and introduce a major new asset class to the market. According to Jesse Knutson, Head of Operations at Bitfinex Securities, this project showcases the transformative power of Bitcoin-based capital markets. It also contributes to El Salvador’s economic growth by creating significant employment opportunities. The implementation of this project is expected to generate approximately 1,000 jobs during its construction phase. Moreover, it could create up to 5,000 jobs in its operational phase. The capital raise is scheduled to begin on May 13, 2024, and will last for one month.
Simultaneously, the tokenization of real-world assets is gaining momentum worldwide. Circle’s recent introduction of a smart contract for the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) exemplifies this trend. Now, investors in BUIDL can seamlessly exchange their tokenized real-world assets for USDC. This functionality, facilitated by Circle’s new smart contract, minimizes transaction costs and enhances liquidity, illustrating the vast potential of blockchain technology. Jeremy Allaire, CEO of Circle, expressed his enthusiasm for the new developments.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.