El Salvador Issues Record-Breaking $1 Billion Bitcoin Bond

The village of El Zonte in El Salvador received a significant boost in 2019 when an anonymous donor gave over $100,000 in Bitcoin to start a local circular economy project. The initiative provided financial tools to a coastal community where 80% of the population previously lacked access to traditional banking infrastructure. Local teenagers were paid in Bitcoin for tasks such as cleaning trash from rivers or working as lifeguards.

The village holds 1,829 residents, many of whom live on the edge of subsistence. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, though the Legislative Assembly changed its status in 2025 to make private usage voluntary. Remittances in 2024 accounted for 24% of El Salvador's GDP.

The Republic of El Salvador will issue a $1 billion Bitcoin Bond on the Liquid Network with a 10-year duration and a 6.5% coupon. The government will split the proceeds: $500 million for Bitcoin purchases and $500 million for building energy and mining infrastructure. Once the initial $500 million reaches its five year mark, the government will share half of the additional gains with investors through the Blockstream Asset Management Platform.