This country plans to build a hotel through RWA Tokenization

El Salvador is pioneering the integration of blockchain technology with traditional sectors, launching a debt issue. This initiative will provide financial support for the construction of a new hotel at El Salvador International Airport.

The facility covers an area of ​​4,484 square meters and includes 80 rooms, five commercial spaces and a variety of facilities including a pool, restaurants, gym, garden and multi-purpose rooms.

The El Salvador hotel project requires a minimum investment of $1000

Bitfinex Securities, the first regulated entity under El Salvador's Digital Asset Securities Act, will lead this work. They plan to fund the hotel project through tokens issued by the developer – Inversiones Laguardia SA de CV (HILSV), aiming to raise $6.25 million.

These tokens offer a 10% coupon over five years, with a minimum investment of $1,000. In addition, investors can get free hotel accommodation based on the investment amount.

HILSV tokens are traded against US dollars and Tether USDT on the Liquid Network, Bitcoin sidechain. Paolo Arduino, CTO of Bitfinex Securities, emphasized the importance of the project.

Read more: What is Real World Asset (RWA) Token Impact?

“Investors who do not have the opportunity to invest in such assets for the first time have the opportunity to do so, when there is little opportunity to find capital in the market, they can enter a new asset class to raise finance,” Arduino said.

This development has the potential to refine El Salvador's capital market and introduce a major new asset class to the market. According to Jesse Knutson, Head of Operations of Bitfinex Securities, this project demonstrates the transformative power of Bitcoin-based capital markets.

It will contribute to the economic growth of El Salvador by creating more jobs.

The implementation of this project is expected to create around 1,000 jobs during the construction phase. It is also likely to create up to 5,000 jobs in the process. The capital increase is scheduled to begin on May 13, 2024 and will last for one month.

At the same time, virtualization of real-world assets is increasing globally. The recent introduction of Circle, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) smart contract, is an example of this trend.

Now, investors in BUIDL can seamlessly exchange their alternative real-world assets for USDC. This functionality is facilitated by Circle's new smart contract, which reduces transaction costs and improves the exchange of money, demonstrating the vast potential of blockchain technology. Circle CEO Jeremy Allaire expressed his enthusiasm for the new developments.

“Real-world asset tokenization is a rapidly emerging product category,” Allaire said.