Investors to Own Tokenized Shares of New Hilton Hotel in El Salvador

Bitfinex Securities, the first licensed digital asset provider in El Salvador, will soon facilitate the country's inaugural tokenized asset raise. Investors can purchase tokenized shares of a new 4,500 square-foot Hampton by Hilton hotel in El Salvador on the Bitcoin layer 2 Liquid Network.

Inversiones Laguardia S.A. de C.V. will issue the debt for this groundbreaking project, seeking to raise $6.25 million from crowdfunders. The hotel, located at El Salvador's international airport, will offer a 10% coupon over a 5-year term.

"This represents an important step forward in developing its nascent capital market as well as introducing a major new asset class into the market," said Paolo Ardoino, Bitfinex Securities' chief technology officer.

Investors will need to make a minimum $1,000 investment to purchase the token under the ticker HILSV on the Liquid Network. Liquid, built by Blockstream in 2018, is a Bitcoin-focused infrastructure firm led by long-time cypherpunk Adam Back.

The hotel project will feature 80 rooms, five commercial spaces, and various amenities including a swimming pool, restaurants, gym, gardens, and multipurpose rooms, according to Bitfinex.

HILSV token holders will also receive complimentary nights' accommodation at the hotel based on their investment size.

El Salvador, renowned for its Bitcoin investment and adoption strategy, ventured into real-world asset tokenization in April 2023 by granting Bitfinex a digital asset service provider license.

Before Bitcoin, many locals in El Salvador faced a choice between no investments or buying an entire house, noted Jamie Robinson, chief strategy officer of The Bitcoin Hardware Store in a recent interview with Cointelegraph.

Bitfinex's expansion signals a "new era of capital markets" on Bitcoin in El Salvador, according to Bitcoin commentator Stacy Herbet, offering the local population a new path to financial markets.

"This capital raise not only marks our first venture in El Salvador but also stands as a testament to the transformative power of Bitcoin-based capital markets," said Jesse Knutson, head of operations at Bitfinex Securities.