Bitfinex Securities, a sister company of Tether, plans to launch Blockstream Mining Note 2 (BMN2) in El Salvador in Q1 of this year, according to a new report from Diario El Salvador.
The planned move follows the successful launch of BMN1 in Luxembourg, which paid out over $70 million in Bitcoin to investors, a 108% return on their initial investment.
This time, BMN2 will be issued from El Salvador, a move designed to democratize access to the unique investment vehicle. Jesse Knutson, head of operations at Bitfinex, explained that the minimum investment in Luxembourg was a hefty $100,000 for non-qualified investors.
The Hotspot
Meanwhile, El Salvador’s regulatory environment, especially with its Digital Assets Law, offers greater flexibility, paving the way for a much lower entry point and opening the door to a wider range of investors, according to Knutson.
Enacted in January 2023, El Salvador’s Digital Assets Law is a regulatory framework for digital assets in the country. Aimed at providing legal clarity and fostering the growth of the digital asset industry in the Central American nation, the law allows for the tokenization of real-world assets and facilitates the issuance of stablecoins.
#DeDinero Este miércoles se desarrolla el @BFXSecurities Day en El Salvador, un evento que reúne a inversionistas y personas con interés en conocer el mercado financiero basado en tokenización que construye el país. Esto se desarrolla en el marco de @PlanBElsalvador.
Video:… pic.twitter.com/6w37M3Vb6M
— Diario El Salvador (@elsalvador) January 29, 2025
The regulated platform, which specializes in the issuance and trading of tokenized financial instruments, including equities, bonds, real estate, and innovative products like hashrate contracts, recently launched USTBL, tokenized US Treasury notes (T-bills), under Salvadoran law.
The launch, facilitated through the company’s partnership with NexBridge, is expected to generate an annual yield of approximately 5% upon maturity of the T-bills.
Tokenization allows for fractional ownership of high-value assets, making it easier for retail investors to participate in markets that were previously inaccessible. Using blockchain technology, investors are able to trade assets 24/7 while transparency and security of transactions are guaranteed.
Major financial entities, including JPMorgan and Goldman Sachs, are actively exploring RWA tokenization. Asset management giant BlackRock, though only launching its tokenized asset fund in less than a year, is one of the most active participants.
In a recent interview with CNBC at the World Economic Forum, BlackRock CEO Larry Fink urged the U.S. Securities and Exchange Commission (SEC) to expedite the approval process for the tokenization of stocks and bonds.
According to Fink, tokenization is a key element of financial reform that would democratize investing and lower the cost of ownership of traditional assets. He noted that these advancements would ultimately benefit everyday investors as they make investment opportunities more accessible.
The tokenization market for real-world assets is expected to reach $50 billion by 2025, driven by increased adoption, technological advancements, and the involvement of institutional players such as BlackRock and Securitize.
El Salvador’s Growing Reputation as Crypto-friendly Hub
With the coming launch of BMN2, Bitfinex aims to establish El Salvador as a leading hub for tokenized capital markets. The company sees lots of room for growth in the country’s tokenized market within the next five years.
The move seems to be in line with Tether’s recent decision to relocate its operations to El Salvador.
The company behind the world’s largest stablecoin by market cap said earlier this month that the decision was reached after it successfully met all regulatory requirements and obtained a Digital Asset Service Provider (DASP) license in the country.
As part of the relocation, Tether is establishing its main headquarters in El Salvador, which will serve as the operational base for the company and its subsidiaries. Tether said it aimed to capitalize on El Salvador’s supportive environment for cryptocurrency, especially as the country was the first to adopt Bitcoin as its legal tender.
Given its market cap of roughly $137 billion, Tether’s move to El Salvador is anticipated to have a big impact on the country’s economy, potentially becoming a major contributor to its GDP.
In addition, the company also plans to construct a skyscraper, dubbed “Tether Tower,” in San Salvador, showing its long-term commitment to establishing a strong foothold in the region.
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