El Salvador announces tokenized investment offerings on the Bitcoin sidechain
2 min readEl Salvador took a decisive step towards tokenization on Tuesday, unveiling national investment opportunities based on Bitcoin infrastructure.
El Salvador Bitcoin: Investing in Development
The country’s National Bitcoin Office launched its blockchain-based fundraising on the Liquid network.
Liquid is a Bitcoin sidechain managed by Blockstream and a coalition of 65 Bitcoin-centric companies worldwide. By using BTC as its native asset, the blockchain enables faster, cheaper, and more private transactions than the Bitcoin blockchain.
In addition to BTC, Liquid enables the issuance of tokens representing various assets, including stablecoins such as Tether (USDT), meme coins, as well as real-world assets and securities.
One of El Salvador’s token offerings includes an investment in the construction of the first hotel at El Salvador’s international airport. The investment would yield an annual return of 10% over five years, with a minimum investment of $1000 required.
“The infrastructure will include 80 rooms, five commercial spaces of 99 square meters each, a swimming pool and various amenities such as restaurants, a gym, gardens, multipurpose rooms, etc.,” says the offer on the Inverlag Hotels website.
Tokenized offerings in the Liquid Network
Investors would also secure free nights at the hotel they are helping to build. Anyone who invests $1 million will receive a free year-round stay during the five-year term of the bond.
“These opportunities are not normally available to the general public,” explained Roberto Laguardia, CEO of Inverlag, in an interview. “They are usually reserved for large or institutional investors and private equity firms… However, with a minimum investment of $1,000, individuals can receive a 10% interest rate paid semi-annually over a five-year period.”
The token issuance was carried out by Salvadoran Bitcoin startup DitoBanx, while the exchange platform through which the tokens were issued is Bitfinex. Due to regulations, the investment is not available to US investors.
Advantages of tokenized investments
El Salvador is the first and only country in the world to treat Bitcoin as legal tender alongside the US dollar. The state regularly invests in BTC and operates a Bitcoin mining operation powered by geothermal energy from the region’s local volcanoes.
These new tokenized investment offerings show that El Salvador does not only recognize Bitcoin as legal tender . The Bitcoin Office announced this week that the country has mined 474 BTC since 2021 and now has a total of 5,750 BTC ($378 million).
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