On August 11, 2025, El Salvador’s Official Gazette published the Investment Banking Law, a regulation that marks a decisive step in the country’s strategy to establish itself as a regional and international financial hub.
This law regulates the incorporation and operation of investment Banks, institutions responsible for channeling large amounts of capital into business and government projects, with the aim of boosting the national economy and expanding financing options.
Exclusivity for sophisticated investors
The regulation establishes that Investment Banks may only serve Sophisticated Investors, meaning individuals or legal entities with financial experience and a minimum net worth of US $250,000 in liquid assets.
These assets may consist of cash, treasury bonds, gold, and even Bitcoin, stablecoins, and tokenized assets.
Robust capital and strict supervision
Entities must be incorporated as fixed-capital corporations with a minimum capital of US $50 million, paid in dollars and deposited with the Central Reserve Bank (BCR). The Superintendency of the Financial System will oversee their operations, while the BCR will establish technical rules to ensure solvency, liquidity, and transparency.
Authorized services
Investment Banks will be able to offer a wide portfolio of services, including:
- Asset management and financial advisory.
- Structuring of corporate operations, such as mergers, acquisitions, and capital placements.
- Access to international capital markets.
- Issuance of financial instruments, including bonds, certificates, and structured products.
- Financing in national, foreign, or digital currency.
- Custody and management services for digital assets.
Integration with digital assets and Bitcoin legislation
One of the most innovative aspects of the law is that it allows Investment Banks to request authorization to operate as Digital Asset Service Providers, Digital Asset Issuers, or Bitcoin Service Providers, in accordance with the Digital Assets Issuance Law and the Bitcoin Law.
This enables the possibility of carrying out investment, financing, and custody operations with Bitcoin, stablecoins, and tokenized assets, broadening the range of opportunities for global investors and positioning El Salvador as a pioneer in integrating cryptocurrencies into its financial system.
