Bitfinex Securities Kickstarts in El Salvador, Eyes U.S. Expansion

Bitfinex Securities, the tokenized securities trading arm of the prominent Bitfinex exchange, has officially launched operations in El Salvador. This strategic move comes months after obtaining a digital asset service provider license under the country’s Digital Assets Issuance Law in April 2023. The launch is a significant step following El Salvador’s comprehensive regulatory and infrastructural development around digital assets last year.

The timing of Bitfinex Securities’ debut is particularly noteworthy, as it coincides with the growing demand for digital investment services, especially in the wake of the first spot Bitcoin (BTC) exchange-traded funds (ETFs) commencing trading in the United States. According to Jesse Knutson, the head of operations at Bitfinex Securities, there is a palpable institutional interest in Bitcoin and Bitcoin-based securities, further fueled by the U.S. spot ETFs’ launch. The platform is also anticipating an increased interest in tokenized securities and real-world assets.

Bitfinex Securities’ introduction in El Salvador is not just a singular event but part of a broader strategy to expand its presence in Central and South America. Knutson highlighted that the platform is accessible to both institutional and individual investors globally, barring sanctioned jurisdictions. This expansion aligns with El Salvador’s significant progress since adopting Bitcoin as legal tender in September 2021. The country has reportedly outperformed regional peers in financial performance since Q4 2021, partly due to Bitcoin-driven investment and tourism.

One of the key developments highlighted by Knutson is the resilience of the Lightning Network capacity amidst Bitcoin’s price volatility over the past two years. The stability and high levels of adoption in El Salvador are seen as contributing factors to this trend.

Bitfinex Securities’ journey began in Kazakhstan in March 2022, under the supervision of the Astana International Financial Center. The platform initially offered the Blockstream Mining Note (BMN), a security token giving qualified non-U.S. investors an opportunity to engage in Bitcoin mining or invest in BTC mining stocks. However, the platform has experienced slow adoption, with reports indicating minimal trading activity in recent months.

The launch in El Salvador marks a significant milestone for Bitfinex Securities, reflecting a strategic pivot towards emerging markets and digital asset-friendly jurisdictions. As the platform prepares to roll out a series of products, including equity and bond-like issuances, the next few months are poised to be pivotal. The company’s expansion into El Salvador and its anticipation of the U.S. market dynamics exemplify the evolving landscape of digital asset trading and the growing intersection of traditional finance with blockchain technology.