Bitfinex Securities will launch a tokenized product in El Salvador to generate BTC mining returns

What’s new? Digital securities exchange Bitfinex Securities plans to launch a Blockstream Mining Note 2 (BMN2) tokenized financial product in El Salvador in Q1 2025. BMN2 combines traditional finance with blockchain technology and offers investors returns on bitcoins mined by Adam Beck’s Blockstream.

Material by Diario El Salvador

What else is known? BMN1, the first version of the instrument issued in Luxembourg, has paid out over 1212 BTC worth $70,7 million to investors, achieving a return on equity of 108% over a three-year period.

A note refers to a debt instrument, similar to a bond, in which the issuer agrees to pay the investor a fixed amount, often with interest or yield tied to the asset’s performance. Unlike traditional bonds, notes typically have shorter maturities.

Tokenization involves converting ownership of real-world assets (RWAs) such as securities, real estate, and commodities into digital coins that can be traded on the blockchain 24/7 without intermediaries, increasing liquidity, and efficiency.

Bitfinex Securities noted that it is working with El Salvador’s National Commission for Digital Assets (CNAD) to obtain the necessary authorizations to launch the product.

A spokesperson said that issuing in El Salvador would make the product more accessible than in Luxembourg, where the minimum investment amount is $100 000 for unqualified investors. In El Salvador, on the other hand, the law on digital assets is more flexible and does not impose such a requirement.

This is just one of the tools the company plans to launch in El Salvador this year, with the aim of developing it as a hub for new capital markets. The coming months will see the introduction of products in real estate and bond tokenization, as well as the first tokenized funds.

Late last year, Bitfinex Securities had already launched tokenized short-term US Treasury bonds in the local market on Blockstream’s Layer 2 (L2) Liquid Network based on the bitcoin blockchain.

“El Salvador’s structure is very flexible and inclusive, so it allows investors of different incomes to participate in the issuance. I think all the companies that issue bonds in Luxembourg and other markets will come here in the next five years because by then we will have a mature market and a lot of offerings,” said Bitfinex head of operations Jesse Knutson.

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Bitfinex Securities is part of the iFinex Group, along with centralized crypto exchange (CEX) Bitfinex and Tether, which issues USDT, the largest stablecoin in the crypto market with a capitalization of over $139,4 billion.

The companies have been cooperating with the authorities of El Salvador for several years to launch joint initiatives, and last May they joined the process of creating a crypto regulation in the country.