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The financial entity will be able to finance projects through the tokenization of assets.
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The president of the CNAD, Juan Carlos Reyes, values the incorporation of the bank to the registry.
The National Digital Assets Commission (CNAD) of El Salvador included Banco Atlántida, a financial entity with more than $3.6 billion in assets, in its registry of digital asset service providers.
the bank received authorization to operate a platform for the exchange or marketing of digital assets or derivative digital assets. The institution also you can place digital assets on platforms or digital wallets and promote, structure and manage all types of investment products in digital assets, as well as loans, mutual funds or any form of financing of digital assets.
According to raisedAfter authorization, the bank will offer a real estate leasing service, where clients will have an alternative to purchase their home relying on tokenization.
Real estate leasing is a contract through which a company purchases real estate (it can be a house, building, land, etc.) at the request of another company or person, with the commitment that the latter use it by paying a periodic rent.
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Through a new product, called Atlántida Living, the bank’s clients will be able to benefit from real estate leasing and thus access real estate, following a simple process. Initially, they must express interest in a property, then The bank buys the property and gives customers an ownership token. This token is paid through a fixed monthly fee. It’s like an income. No premiums or writing costs. Each payment increases the value of the token.
Once the full amount of the home has been paid at the end of the term, the token disappears and clients receive the official deeds of the property, registered in the National Registry Center (CNR).
The name of the bank appears reflected in the PSAD registry. Source: CNAD.
Tokenization yes, cryptocurrencies no
According to the bank, they will only work with real world assets. This implies that in financial operations Cryptocurrencies specifically will not participate and everything will be based on the tokenization of assets.
“It is what we believe the country needs to take off in terms of attracting investment. It is not in our plan in the short term to work with cryptocurrencies, it is not the objective of our project in the early stages,” said Carlos Turcios, president of Banco Atlántida El Salvador, in a interview recent.
In general, and in addition to the real estate issue, this new financial service implies that those seeking to finance a project They will be able to do so through an issuance of digital assets or tokenization of assets.a more expeditious process that offers tax benefits by law, more immediate liquidity and allows the participation of local and foreign investors.
Tokenization has a significant advantage over other financial mechanisms, such as securitization, due to its ability to operate with smaller amounts. While securitization typically involves the pooling of large amounts of assets to create marketable securities, which can require considerable capital and complex structures, Tokenization allows assets to be divided into much smaller parts or “tokens.”
This means that even lower-value assets can be broken up and sold on the market, allowing investors with less capital to participate in investments that would otherwise be out of reach. So, Tokenization democratizes access to investment and opens opportunities to a broader audience.
“When an asset is ‘tokenized’ it is registered in a Blockchain that can be checked, validated, and safeguarded. A product is more standardized so that any investor in the world can access it,” says Turcios.
The banking executive affirms that the fact that Banco Atlántida has entered the registry “gives a lot of credibility to the ecosystem”, since this is done on the bank’s infrastructure, “with access security controls, information security and compliance.”
“A significant weight”
To delve into the implications of the approval of Banco Atlántida as a digital asset service provider, CriptoNoticias spoke with Juan Carlos Reyes, the president of the National Commission for Digital Assets (CNAD) of El Salvador.
As Reyes sees it, The bank’s authorization “has significant weight for the CNAD.”
“This is because, historically, traditional financial players have demonstrated a certain reluctance to embrace the digital asset industry, exacerbated by global anti-crypto initiatives such as Chokepoint 2.0, which have led to a less than welcoming stance on the part of banks,” he asserted.
He maintains that, with his decision, The bank sets a precedent. “And it would not be surprising if other banks follow suit, marking a turning point in the relationship between traditional banking and digital assets.”
Reyes commented that the registration of Banco Atlántida as the first financial entity “was not a simple achievement,” considering the additional supervision by the Superintendency of the Financial System.
“However, by overcoming these challenges, it has proven to be an actor that significantly enriches the market, bringing its vast experience in the traditional financial field and its established portfolio,” the regulator said. “At CNAD, we hope that this synergy between traditional and digital will drive the healthy growth of the digital asset sector,” he added.
Reyes values the inclusion of Banco Atlántida in the PSAD registry. Source: Courtesy CriptoNoticias.
Reyes commented that Banco Atlántida’s decision not to focus on cryptocurrencies in the short term and rely on tokenized services, It is part of “a widespread misunderstanding about the nature of cryptocurrencies.”
“Most of them are not financial instruments in the traditional sense, but rather vehicles for raising funds for the development of their underlying technology,” he said. “In this context, Banco Atlántida’s decision to focus on tokenized services, instead of cryptocurrencies, demonstrates a strategic vision,” he stated.
“They are building a crucial bridge between traditional financial markets and the world of tokenized digital assets, which can offer more stability and opportunities for regulated growth,” he argued.
Kings He did not reveal if other Salvadoran banks are also on hold of the authorization of the body that he presides to launch services for digital assets. However, he anticipated that the year 2025 “will mark a significant milestone in the adoption of digital assets by several traditional companies.”
“The recent direction driven in the United States, under the administration of President Trump, has generated a boom that will predictably motivate more traditional companies to adopt this technology seriously, which will eventually lead them to enter the digital asset market” , he finished.
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