A warehouse, which was partially funded by a sales symbolized by construction, is one of the first time this funding scheme has been successfully used in El Salvador. The Digital Assets Act allows this type of funding model, allowing businesses to take advantage of the opportunities associated with it.
Tokenized warehouse opened in El Salvador
El Salvador uses tokenized equipment as business enablers, allowing businesses to use this innovative scheme to fund projects. Real estate developer Burgo de Osma and its tech partner Mio3 have built the first tokenized warehouse: Cobodosa complex in El Salvador in the Zaragoza district.
The 10 independent module complex equipped for any industry is one of the first companies of its kind to successfully use the tokenization model for fundraising purposes. The overall complex cost $21 million, which was partially funded by the builders, and partially funded by the revenue from tokenized sales.
Javier Aylagas, president and founder of Burgo de Osma, discussed the relevance of the project as a pioneer in tokenization in El Salvador. He said:
Today we are not only opening a first-class warehouse complex, but also witnessing the beginning of a new era of real estate investment in the country thanks to the benefits granted by El Salvador’s Digital Assets Act, primarily tax benefits.
Jiro Valdez, CEO of MIO3, also highlighted the benefits of tokenization for companies seeking to raise funds in El Salvador. “The adoption of digital assets has strengthened the confidence that investors and buyers have in the market,” he emphasized. The tokens for this project were not publicly available and were purchased by two privately-public international investment funds.
The report states that the Digital Assets Act, approved in 2022, is expected to increase further as it approved more than $5 billion issuance in 2024 and has been successful cases in which the financial scheme is operating.
Nevertheless, one of the first initiatives to leverage tokenization aimed at building a Hilton hotel in El Salvador failed due to a lack of interest.
Read more: First Digital Debt Offer Cannot Get Traction in El Salvador
