Bitfinex Securities, the tokenized securities arm of the Bitfinex exchange, is set to make a significant mark in El Salvador following the country’s embrace of digital assets. Months after securing a digital asset service provider license under El Salvador’s pioneering Digital Assets Issuance Law in April 2023, Bitfinex Securities is ready to launch its services in the nation, aligning with the government’s finalized regulations and infrastructure for the digital asset ecosystem.
The launch, announced on January 31, comes at a time when the global financial landscape is witnessing a surge in demand for regulated digital investment services, especially in the wake of the U.S. debuting its first spot Bitcoin exchange-traded funds (ETFs). Jesse Knutson, head of operations at Bitfinex Securities, anticipates a heightened institutional interest in Bitcoin and related securities, spurred by the U.S. ETF launches. The platform is also gearing up for increased engagement in tokenized securities and real-world asset tokenization.
Bitfinex Securities aims to diversify its offerings with a variety of products, including equity and bond-like issuances, expecting to make announcements in the upcoming months. The platform is looking forward to hosting both domestic and international issuers, indicating a robust pipeline of offerings.
The strategic move to launch in El Salvador is part of Bitfinex Securities’ broader initiative to expand its footprint across Central and South America. Knutson highlighted that the platform is accessible to both institutional and individual investors globally, barring sanctioned regions. He emphasized El Salvador’s significant strides in financial performance and Bitcoin adoption since making Bitcoin legal tender in September 2021, noting the country’s outperformance of regional peers partly due to Bitcoin-driven investments and tourism.
Knutson also pointed out the resilience of the Lightning Network’s capacity amidst Bitcoin’s price volatility, attributing its stability to the growing adoption in El Salvador. This launch follows Bitfinex Securities’ initial trading debut in Kazakhstan in March 2022 under the Astana International Financial Center’s oversight. Despite a slow start with sporadic trading activity, Bitfinex Securities is poised for growth with its El Salvador launch, tapping into the burgeoning market for digital asset services in the region.
