Bitfinex Securities, a digital asset platform, has announced that it will refund investors of its Hilton hotel venture at El Salvador’s international airport. The project, which was the first public offering of digital debt assets in El Salvador, fell short of its funding goal, attracting only $342,000 from investors, far below the minimum requirement of $500,000. As a result, Bitfinex will be refunding all investors, as stated in the Relevant Information Document. However, the company expects the issuer, Inversiones Laguardia S.A. de C.V., to restructure the offer. In the meantime, Bitfinex has removed the public offering from its website.
The funds raised were intended to finance the construction of the Hampton by Hilton hotel, which would have had a total area of 4,500 square meters across five levels and offered 80 rooms, a restaurant, working area, swimming pool, gym, and garden. To invest in the Hilton hotel venture, individuals had to purchase the “HILSV” token on the Bitcoin layer 2 Liquid Network with a minimum investment of $1,000. In return, investors would receive a 10% coupon over a 5-year period.
El Salvador, known for its Bitcoin investment and adoption strategy, ventured into the real-world asset tokenization space in April 2023 when it granted Bitfinex a digital asset service provider license. The announcement of the Hilton hotel venture was seen as a significant development in El Salvador’s capital markets, offering the local population a new way to access financial markets. Additionally, El Salvador is working towards establishing investment banks that provide Bitcoiners with financial services and fewer restrictions compared to traditional banks.
Source: El Economista