New legislation aims to attract global capital and establish El Salvador as a regional hub for digital assets.
El Salvador’s Legislative Assembly has enacted a comprehensive Investment Banking Law creating a new category of financial institutions dedicated exclusively to high-net-worth and institutional clients, according to a recent press release.
Proposed last year, the legislation seeks to establish private investment banks capable of processing Bitcoin transactions, diversifying funding sources, and offering deposits, loans, and a full range of financial services in both BTC and USD.
Supported by the Ministry of Economy, the law introduces a regulatory framework for investment banks providing asset management, financial advisory, corporate transaction structuring, structured financing, and market analysis.
Under the law, investment banks must maintain a minimum capital of $50 million and operate independently from commercial banks. They may apply for authorization to act as digital asset service providers, digital asset issuers, and Bitcoin service providers.
Lawmakers stated that the legislation is designed to draw international private capital, global financial groups, and high-net-worth individuals to use El Salvador as a strategic base for regional operations.
The framework restricts services to sophisticated investors — defined as individuals or entities with significant market experience, the capacity to manage complex financial risks, and a minimum of $250,000 in liquid assets, which can include Bitcoin, treasury bonds, tokenized products, gold, or cash.
The regulation authorizes investment banks to conduct activities such as bond issuance, loan granting, foreign currency transactions, and complementary financial services.
Oversight will be provided by the Central Reserve Bank (BCR), which will set capital, liquidity, and risk management standards, as well as guidelines for digital asset operations. The Superintendency of the Financial System (SSF) will ensure compliance, transparency, and investor protection.
Dania González, a member of the Legislative Assembly, emphasized that investment banking plays a key role in enabling governments, companies, and institutions to secure funding for major projects.
The law is expected to deliver significant benefits, from attracting foreign capital and international financial groups to positioning El Salvador as a competitive regional financial center.
“We are transforming El Salvador into a specialized financial hub, fostering international credibility, institutional trust, and competitiveness,” González said.
The legislative milestone follows comments earlier this week from the National Bitcoin Office (ONBTC), which indicated that Bitcoin-focused banks are on their way to El Salvador.
