Bitfinex launches tokenized debt for El Salvador’s new Hilton hotel

Bitfinex Securities is launching a tokenized debt offering to fund the construction of a new Hilton hotel.

According to the Bitfinex press release, the new hotel will be at the El Salvador International Airport. The token will be issued under the ticker HILSV, which will be available for trading in exchange for U.S. dollars and the USDT stablecoin. The token issuance is set to occur on the Liquid Network, a sidechain of Bitcoin.

The development marks a growing trend in the tokenization of assets, where traditional financial instruments like loans and bonds are transformed into digital tokens on blockchain platforms, offering fresh avenues for investment and trading.

The introduction of HILSV follows a $5.2 million tokenized bond initiative successfully executed by Alternative through Bitfinex Securities AIFC in Kazakhstan. To participate in Bitfinex Securities’ offerings, investors must complete verification processes with its operations in both Kazakhstan and El Salvador.

The current tokenized debt offering aims to raise $6.25 million. It promises a 10% annual return over five years with a minimum investment threshold of $1,000.

The new Hampton by Hilton hotel will cover a 4,484-square-meter area over five floors and plan to feature 80 guest rooms, a swimming pool, dining venues, and retail spaces. While Hilton Hotels is associated with the hotel brand, it has not endorsed this specific financing initiative, serving solely as a franchisor with no direct involvement.