Bitfinex Expands to El Salvador, Aims for US Expansion

Bitfinex Securities, a tokenized securities trading platform operated by Bitfinex exchange, is launching in El Salvador. The platform received a digital asset service provider license under the country’s Digital Assets Issuance Law in April 2023, following the government’s completion of key regulations and infrastructure for the digital asset regime. Bitfinex Securities anticipates a significant demand for regulated digital investment services, especially after the launch of the first spot Bitcoin exchange-traded funds (ETFs) in the United States.

Jesse Knutson, the head of operations at Bitfinex Securities, stated that institutional interest in Bitcoin and Bitcoin-based securities is expected to increase following the launch of the U.S. spot ETFs. The platform also anticipates a surge in interest for tokenized securities and real-world assets. With the launch in El Salvador, Bitfinex Securities plans to introduce various products, including equity and bond-like issuances, in the coming months.

Bitfinex Securities aims to expand its presence in Central and South America with its launch in El Salvador. The platform has been available to institutional and individual investors worldwide, except for sanctioned jurisdictions. El Salvador’s adoption of Bitcoin as legal tender in September 2021 has positively influenced its financial performance, surpassing regional peers and expectations since Q4 2021. The growth is partly attributed to Bitcoin-driven investments and tourism in the country. The Lightning Network, a scaling solution for Bitcoin, has demonstrated resilience despite price volatility and is experiencing growing adoption in El Salvador.

In March 2022, Bitfinex Securities began trading in Kazakhstan, under the supervision of Kazakhstan’s national financial hub, known as the Astana International Financial Center. The platform initially traded the Blockstream Mining Note (BMN), a security token that allowed qualified non-U.S. investors to mine Bitcoin or invest in BTC mining stocks. The platform has experienced slow adoption and reportedly did not see a single trade in two months.

Despite the initial challenges, Bitfinex Securities remains optimistic about its expansion into El Salvador and is committed to providing regulated digital investment services. The platform aims to cater to a diverse range of issuers, both domestic and international. By diversifying its product offerings and expanding its presence in Central and South America, Bitfinex Securities hopes to tap into the growing demand for tokenized securities and contribute to the development of the digital asset ecosystem in the region.