El Salvador’s latest Hilton hotel plans to leverage tokenized debt backed by Bitcoin. Investors must commit a minimum investment of $1,000 to acquire the token, which will be available on the Bitcoin layer 2 Liquid Network and identified by the ticker HILSV.
Shortly, investors can acquire ownership stakes in a recently constructed 4,500-square-foot Hampton by Hilton hotel in El Salvador through the purchase of tokenized shares. These shares will be issued on the Bitcoin layer 2 Liquid Network.
Bitfinex Securities, the premier licensed and registered digital asset provider in El Salvador, will oversee the nation’s pioneering tokenized asset raise. Inversiones Laguardia S.A. de C.V. will issue the debt.
Inversiones Laguardia aims to raise $6.25 million from crowdfunders in exchange for a 10% coupon over a five-year term for the hotel’s construction at El Salvador’s international airport.
“[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, chief technology officer of Bitfinex Securities, in an April 11 statement.
“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, can tap into a new asset class to raise finance.”
To acquire the token, investors must commit at least $1,000, and it will be available under the ticker HILSV on the Liquid Network. The Liquid Network, developed by Blockstream in 2018, is a Bitcoin-centric infrastructure initiative spearheaded by Adam Back, a prominent figure in the cypherpunk community.
Bitfinex pointed out that the hotel venture will encompass 80 rooms across five levels, along with five commercial units and various amenities such as a swimming pool, restaurants, a gym, gardens, and multipurpose rooms.
Depending on the extent of their investment, HILSV tokenholders will receive complimentary stays at the hotel as part of the package.
In April 2023, El Salvador, renowned for its Bitcoin investment and adoption initiatives, made a foray into real-world asset tokenization by awarding Bitfinex a license as a digital asset service provider.
Jamie Robinson, chief strategy officer of The Bitcoin Hardware Store, highlighted in a recent interview with Cointelegraph that before Bitcoin, many residents in El Salvador faced limited investment options, often having to choose between no investments or purchasing an entire house.
Bitcoin commentator Stacy Herbet remarked that Bitfinex’s expansion signifies a “new era of capital markets” on Bitcoin in El Salvador, providing the local population with a fresh avenue to access 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.
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