El Salvador is taking another bold step in its Bitcoin journey, giving major financial institutions the green light to serve wealthy crypto investors.
A newly approved law will allow banks with at least $50 million in capital to qualify as investment banks and expand into digital asset services – provided they meet strict regulatory standards.
These investment banks can now pursue licenses to create and manage crypto-linked products for “sophisticated investors,” defined as those holding more than $250,000 in liquid assets. The change builds on El Salvador’s existing framework for Bitcoin service providers, digital asset platforms, and token issuers, but crucially, it lets licensed banks add crypto operations to their existing services rather than operate under a separate system.
This means well-funded institutions could soon hold Bitcoin, launch tokenized products, and structure blockchain-based investment deals while staying within the country’s traditional regulatory umbrella. Supporters say this will streamline institutional adoption, making it easier for large banks to offer secure, compliant crypto services without reinventing their business models.
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Representative Dania González called the reform a strategic expansion of the nation’s financial infrastructure, complementing – rather than replacing — the current banking system. Backed by the Ministry of Economy, the initiative aims to position El Salvador as a hub for high-value crypto banking and attract global capital looking for a regulated gateway into Bitcoin.
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Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.
