El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin

Soon, investors can purchase representative shares, equivalent to a 4,500 sq ft Hampton by Hilton hotel in El Salvador, through tokenized investments on the Bitcoin Liquid Network’s second layer.

Bitfinex Securities, El Salvador’s first licensed and registered digital asset provider, will help the country facilitate its first tokenized asset fundraising event. Debt for this initiative will be issued by Inversiones Laguardia S.A. de C.V.

At El Salvador’s international airport, a new hotel is planned to be built by Inversiones Laguardia. They aim to collect $6.25 million through crowdfunding for this project, offering a 10% annual return over a five-year period as an incentive.

El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin

“Paolo Ardoino, Bitfinex Securities’ CTO, noted on April 11 that this development is a significant advancement towards expanding their growing capital market and introducing a new financial asset to the market.”

“For the first time, investors who do not usually have the opportunity to invest in such assets have the opportunity to do so, while issuers in markets which have less access to capital, are able to tap into a new asset class to raise finance.”

To buy the HILSV token using the Liquid Network, investors must make a minimum investment of $1,000. The Liquid platform was developed by Blockstream in 2018, which is a well-known Bitcoin infrastructure company headed by Adam Back, a veteran in the cypherpunk community.

Bitfinex mentioned that the hotel project will consist of five stories, containing 80 accommodations, as well as five retail areas. Additional features will include a swimming pool, eateries, fitness center, gardens, and versatile event spaces.

El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin

As a token holder of HILSV, you’ll receive complimentary nights at the hotel proportional to your investment level.

In April 2023, El Salvador, famous for its Bitcoin investment and use, granted a digital asset service provider license to Bitfinex, allowing the expansion of its efforts into tokenizing real-world assets.

Before the advent of Bitcoin, many residents in El Salvador found themselves in a predicament where they had limited investment options or were required to purchase an entire house outright, as mentioned by Jamie Robinson, the chief strategy officer of The Bitcoin Hardware Store during a conversation with CryptoMoon.

According to Bitcoin expert Stacy Herbet, Bitfinex’s growth signifies a fresh chapter in Bitcoin finance in El Salvador, providing the local community with an innovative means to engage in financial markets.

“Jesse Knutson, Bitfinex Securities’ head of operations, stated that this fundraising round signifies our initial entry into El Salvador and serves as evidence of the revolutionary potential of Bitcoin finance markets.”

El Salvador’s newest Hilton hotel to tap into tokenized debt on Bitcoin

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2024-04-12 04:06