Bitfinex Securities to Launch Tokenized Trading Platform in El Salvador Amid Growing Global Interest
Summary:
Bitfinex Securities is launching its tokenized securities trading platform in El Salvador, months after receiving a digital asset service provider license. The move follows the government's establishment of key digital asset infrastructure and regulations. The company anticipates significant demand for regulated digital investment services, particularly in the wake of the first Bitcoin spot exchange-traded funds in the U.S. Bitfinex Securities aims to boost its presence in Central and South America, and the platform is available to global investors, barring those in sanctioned jurisdictions.
Just months after being granted a digital asset service provider license under El Salvador's Digital Assets Issuance Law in April 2023, Bitfinex Securities is set to inaugurate its tokenized securities trading platform in the country. This move comes on the heels of the Salvadoran government establishing key regulations and infrastructure for digital assets in the previous year. Bitfinex Securities, on January 31, revealed that they anticipate considerable uptake for regulated digital investment services, particularly following the initiation of the first Bitcoin (BTC) spot exchange-traded funds (ETFs) in the United States. In the words of Bitfinex Securities' operations head, Jesse Knutson, the interest of institutional entities in Bitcoin and Bitcoin-based securities will likely surge with the introduction of U.S. spot ETFs. The company also anticipates a growing interest in tokenized securities and real-world assets. Bitfinex Securities intends to introduce an array of products such as equity- and bond-like issuances in the coming months. Knutson emphasized that the diverse clientele include both domestic and international issuers. Bitfinex Securities is also looking at augmenting its footprint in both Central and South America through its El Salvador launch. The platform is open to investors globally, except those in sanctioned regions. El Salvador's significant growth since recognizing Bitcoin as a valid currency in September 2021 has caught Knutson's attention. El Salvador's economic growth has reportedly superseded regional comparisons and expectations, driven largely by Bitcoin-backed investment and tourism. Despite Bitcoin price volatility over the past two years, the eventual resilience of the Lightning Network capacity, believed to be due to growing adoption in El Salvador, was also noted. Bitfinex Securities had previously initiated trading in Kazakhstan in March 2022, supervised by the Astana International Financial Center, offering a security token for Bitcoin mining or investment in BTC mining stocks to non-U.S. investors. Despite slow uptake in the preceding months, Bitfinex Securities is optimistic about the future.
Published At
1/31/2024 6:00:20 PM
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