El Salvador Unveils Bitcoin Sidechain for Tokenized Investment Opportunities
El Salvador has taken a significant leap into the world of tokenization by announcing national investment opportunities based on Bitcoin infrastructure. The country’s National Bitcoin Office has launched a blockchain-based capital raise on the Liquid network.
Managed by Blockstream and a federation of 65 Bitcoin-centric companies, the Liquid network is a Bitcoin sidechain that enables faster, cheaper, and more private transactions compared to the main Bitcoin blockchain. In addition to Bitcoin, the Liquid network also allows the issuance of tokens representing various assets, including stablecoins like Tether (USDT), meme coins, and real-world assets and securities.
One of the investment opportunities offered by El Salvador involves funding the construction of a new hotel at El Salvador International Airport. Investors would receive a 10% annual yield over a five-year period, with a minimum investment of $1000. The hotel infrastructure includes 80 rooms, commercial spaces, a swimming pool, restaurants, a gym, gardens, and multipurpose rooms.
Investors who contribute $1 million or more will also receive free stays at the hotel throughout the five-year lifespan of the investment bond. These opportunities are typically limited to large-scale or institutional investors and private equity firms, but now individuals can access a 10% interest rate with a minimum investment of $1000.
The tokenized issuance was conducted by El Salvador Bitcoin startup DitoBanx, with Bitfinex serving as the exchange platform for issuing the tokens. However, due to regulatory restrictions, the investment is not available to U.S. investors.
El Salvador has made headlines as the first and only country to recognize Bitcoin as legal tender alongside the U.S. dollar. The country has been actively investing in BTC and operates a Bitcoin mining operation powered by geothermal energy from local volcanoes. The recent introduction of tokenized investment offerings further demonstrates El Salvador’s commitment to embracing Bitcoin. The nation has mined 474 BTC since 2021 and currently holds a total of 5,750 BTC, equivalent to $378 million.
El Salvador’s innovative approach to Bitcoin has garnered international attention, and these tokenized investment opportunities signify another milestone in the country’s journey towards embracing digital assets.