June 21, 2024

El Salvador continues to embrace blockchain technology for economic solutions. Remarkably, El Salvador’s newest Hilton Hotel is tapping into tokenized technology through the Bitcoin blockchain. 

Through these tokenized assets, investors can make a minimum deposit of $1000 for a fractional ownership of the hotel. The token will be issued on Bitcoin’s layer 2 Liquid Network, with HILSV as its ticker symbol.   

El Salvador Combines Blockchain Technology with Real Estate 

According to the update, investors will be able to own a part of the 4,500-square-foot Hampton by El Salvador’s Hilton Hotel by buying the tokenized shares issued on Bitcoin’s L2 network

For a $6.25 million debt raise to build the Hilton Hotel, El Salvador is offering investors a 10% coupon over five years. Investors can tap into it with a minimum investment of $1000. 

This is El Salvador’s first tokenized asset fundraising, offered by Bitfinex Securities. Notably, Bitfinex is El Salvador’s first registered and licensed digital asset services provider. The debt will be issued by Inversiones Laguardia S.A.de C.V.

Bitfinex’s CTO Paolo Ardoino reacted to the vital update, noting that it’s the first collaboration between El Salvador and Bitfinex Securities. According to Arduino, the development signals the start of huge opportunities in Real-World Asset (RWA) Tokenization. 

According to the report, the hotel’s construction site will be near the El Salvador’s international airport. The project will be a high-rise building with five levels, eighty rooms, and other facilities. Some of these facilities include a gym, swimming pool, multi-purpose rooms, and gardens. 

HILSV token holders will be offered some free night accommodations depending on the size of their investment. 

El Salvador, renowned for its ambitious Bitcoin adoption strategy, advanced into the real-world asset market in April last year. At the same time, the country granted Bitfinex a digital asset service provider license. 

Bitcoin Investors and Others Hail El Salvador’s Tokenized Debt Strategy 

Before now, El Salvador locals could only buy an entire house or own zero investments. However, the tokenized asset endeavor makes fractional building ownership possible. 

Also, the development opens new doors into the capital markets in El Salvador, a commentator, Gerson Martinez, noted. Small and medium projects can have access to capital and investors through tokenized debt and equity offerings. 

Guillermo Contreras, the CEO of Ditobanx, a firm responsible for the hotel’s tokenization and the structuring of the transaction, expressed his delight in the collaboration. 

Also, the President of Inversiones Laguardia (INVERLAG), Roberto Laguardia, reacted to the development. According to Laguardia, El Salvador’s newly implemented digital asset laws have unlocked access to capital markets, which was previously unavailable to the people.

He noted that such development will facilitate the development of crucial tourism-related infrastructure, thus boosting the growth of the tourism sector.

El Salvador continues to build its reputation as a crypto-friendly nation, and its latest tokenization effort will likely attract investors.  


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