Bitfinex Receives USD 0.5B from Users on El Salvador’s Bitcoin Bonds

Bitfinex, a crypto trading platform that will host the issuance of El Salvador’s much-discussed bitcoin (BTC) bond, has confirmed “half a billion dollars” worth of interest already received from its customers.
Bitfinex Receives USD 0.5B from Users on El Salvador's Bitcoin Bonds
Bitfinex Receives USD 0.5B from Users on El Salvador’s Bitcoin Bonds

According to the Financial Times, Bitfinex Chief Technology Officer Paolo Ardoino said:

“Some of our users have proactively reached out to us to express their interest. They are definitely interested in participating in this but they are waiting for the details to be published.”

The same media source quoted an anonymous “industry executive with experience working with Bitfinex” simply stating:

“There is a ton of wealth that is outside the banking system and wants to remain outside it.”

Such investors were willing to buy government debt “in a crypto-friendly manner,” even if it meant “making less in terms of returns.”

Bitfinex is simply playing a waiting game, according to Ardoino, who admits that “fuller information of the bond’s provisions” would not be revealed until the government releases its new securities legislation, which Bukele claims is “in the oven.”

Ardoino said:

“The timeline for that could be from one week to a couple of months. That’s the main blocker for us to move forward.”

According to the Financial Times, “those close to the initiative” are “bet[ing] that significant players in the crypto world” will see the bonds as “an appealing investment, despite the comparatively low returns and uncertainty surrounding them.”

Investors liked the idea of the bonds’ “world-first” status, according to more unnamed “people involved in the project,” who added:

“There is a desire to be part of something so groundbreaking.”

However, the media outlet also pointed to an analysis piece published by the British banking giant Barclays, which concluded that “there seems to be little chance of a transaction any time soon.”

Traditional investors, according to the unnamed sources, are unlikely to invest in the initiative, but bitcoin whales are considerably more likely to do so.