With the laws in place, international companies can issue regulated tokenized financial products from within the country to raise funds and develop projects.
El Salvador has laid the groundwork to become the center of a new capital and investment market using innovative financial tools. Currently, the country has a Digital Asset Issuance Law that allows for the tokenization of assets, and a proposal to incorporate private investment banks that can use Bitcoin is also being studied.
To date, more than 20 companies have registered with the National Commission for Digital Assets (CNAD) as digital service providers, a status that allows them to design financial products based on blockchain technology and backed by clear legislation and strict parameters to protect investments.
On this basis, two tokenized issues have been made for different markets. The first project was issued on 18 January by e-Grains with tokens backed 100% by soybean futures contracts and custodial collateral, and was designed by digital services provider IB Maker X; the second, launched in May, consists of tokenized bonds from Inversiones Laguardia to finance the construction of a new hotel at El Salvador International Airport and involved registered provider Ditobanx.
These issues were the first, but will not be the last. As an example, the Bulgarian football club Botev Plovdiv announced exclusively to “Diario El Salvador” that it will launch tokens representing shares in its company in the remainder of the year, using the laws in force in the country. With this, they seek to democratize access to small investors to be co-owners of the firm.
Source: Diario El Salvador
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