Bitfinex issues tokenized debt for El Salvador’s first hotel funded via blockchain

Bitfinex Securities is issuing a tokenized debt offering to fund the construction of a new Hampton by Hilton hotel at El Salvador International Airport, according to an April 11 statement shared with Crypto.

The tokenized debt offering is the first of its kind in the Central American country, seeking to raise $6.25 million. The short-term debt has a 10% coupon over a 5-year term, and the minimum investment is $1000.

According to the statement, the hotel complex will be a 4,484-square-meter facility with 80 rooms, five commercial spaces, and other amenities across five levels.

Details

Bitfinex Securities partnered with Inversiones Laguardia (HILSV), an established entity in El Salvador, to oversee the tokenized debt.

Meanwhile, Ditobanx is responsible for tokenizing and structuring the transaction and ensuring that it is issued on the Liquid blockchain, a Bitcoin layer-2 solution. The token will trade under the HILSV ticker with two trading pairs, including the fiat US Dollar and Tether’s USDT stablecoin. Trading will occur exclusively on the Bitfinex Securities platform.

Paolo Ardoino, Bitfinex CTO and Tether CEO, said:

“The HILSV token marks the first digital asset tokenisation from El Salvador and represents an important step forward in developing its nascent capital market as well as introducing a major new asset class into the market.”

Notably, Hilton’s role in this arrangement is limited to that of a franchisor and does not entail direct involvement.

‘Economic benefit’

The initiative is expected to generate approximately 1,000 jobs during construction and up to 5,000 direct and indirect jobs during operational phases. The capital raise will commence on May 13, 2024, and is projected to last a month.

Meanwhile, several stakeholders in the deal believe that the deal presents an opportunity to develop El Salvador’s economy further.

Roberto Laguardia, the president of Inversiones Laguardia, explained:

“The recently implemented digital asset laws will grant us access to capital markets that were previously unavailable to us. This access will allow us to develop crucial tourism-related infrastructure, thereby unlocking the potential for growth in the tourism sector. This expansion will ultimately result in economic benefits for every Salvadoran citizen.”