Bitfinex Securities has announced plans to issue Blockstream Mining Note 2 (BNM2) in El Salvador in the first quarter of 2025. According to the report, the company noted that the BMN2 is a tokenized product that will provide investors with rewards from Blockstream’s bitcoin mining.
Blockstream had initially debuted the first version of the BMN in Luxembourg, which saw investors recoup profits of about 1,212 BTC in the last three years. The firm will also reduce the investment threshold for the second phase in El Salvador, compared to the first version, whose minimum investment was about $100,000
Bitfinex will issue BMN2 notes in El Salvador
According to the company, the ‘note’ signifies a debt instrument that an issuer commits to paying an investor a fixed amount at a future date, often coming with interest or a fixed return linked to the performance of the asset. Tokenizing also means that such a type of asset is converted into a digital unit, which can then be stored, transferred, and managed securely.
The notes share a resemblance to bonds, except those are issued by traditional exchanges and are used in a regulated environment. The major difference is that notes are created on a digital platform and can be moved across blockchains. The product will expose investors to Bitcoin mining, allowing them to receive rewards based on the mining operations of Blockstream.
Bitfinex Securities Head of Operations Jesse Knutson mentioned that the product will be launched in line with the laws in El Salvador. The first version saw a return of 108%, with investors netting $70,677,346 in profits. ‘BMN2 is one of the few tokenized products that has a history, and investors can see the results of BMN1. This will be a direct issuance on our platform, and investors will be able to buy and sell on it. We are working with the CNAD (National Commission of Digital Assets) to obtain approval,” he said.
El Salvador on the quest to become a global crypto hub
According to a report by Dario El Salvador, Bitfinex Securities held an event in different parts of the countries in line with the Plan B Forum that was held this week. The first panel, featuring the National Commission of Digital Assets and tokenization experts, talked about the issuance of tokens from El Salvador. The panel discussed the requirements for creating and launching tokenized products in the country.
The second panel talked about Bitcoin, its adoption, and the development of laws that will aid its adoption. The third panel, which included several companies from the mining industry, talked majorly about mining. El Salvador has emerged as a pro-crypto zone after President Nayib Bukele made his first Bitcoin purchase. He even went as far as making Bitcoin a legal tender in the country. Bitfinex Derivatives have also been making moves in the country, with the company’s CTO Paolo Ardoino noting that the transition is a pivotal moment for the company.