El Salvador Introduces Tokenized Investment Opportunities on Bitcoin Sidechain
El Salvador has made a significant move towards tokenization by introducing national investment opportunities based on Bitcoin infrastructure. The National Bitcoin Office of El Salvador has initiated a blockchain-based capital raise on the Liquid network.
Liquid is a Bitcoin sidechain managed by Blockstream and a federation of 65 Bitcoin-focused companies worldwide. This blockchain, which utilizes BTC as its native asset, enables faster, cheaper, and more private transactions compared to the main Bitcoin blockchain. In addition to BTC, Liquid also allows for the creation of tokens that represent various assets, including stablecoins like Tether (USDT), meme coins, and real-world assets and securities.
One of the token offerings in El Salvador involves investing in the construction of a new hotel at El Salvador International Airport. Investors can expect a 10% annual return over a five-year period, with a minimum investment of $1000.
The hotel’s infrastructure will include 80 rooms, five commercial spaces measuring 99 square meters each, a swimming pool, and various amenities such as restaurants, a gym, gardens, and multipurpose rooms, among others, according to the offering details on the Inverlag Hotels website.
Investors who contribute $1 million or more will receive free nights at the hotel throughout the entire five-year lifespan of the bond.
“These opportunities are typically exclusive to the general public,” explained Roberto Laguardia, CEO of Inverlag, in an interview. “They are usually reserved for large-scale or institutional investors and private equity firms. However, with a minimum investment of $1000, individuals can access a 10% interest rate, paid bi-annually, over a five-year period.”
The tokenized offerings were facilitated by El Salvador Bitcoin startup DitoBanx, while the exchange platform used for issuing the tokens is Bitfinex. Due to regulatory restrictions, the investment is not available to U.S. investors.
El Salvador is the first and only country in the world to recognize Bitcoin as legal tender alongside the U.S. dollar. The country actively invests in BTC and operates a Bitcoin mining operation powered by geothermal energy from local volcanoes.
El Salvador’s embrace of Bitcoin goes beyond its legal tender status, as evidenced by these new tokenized investment opportunities. The Bitcoin Office of El Salvador reported that the nation has mined 474 BTC since 2021 and currently holds a total of 5,750 BTC ($378 million).
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