El Salvador Opens Doors for Institutional Bitcoin Holdings
In a move that could attract institutional capital, El Salvador has approved a law permitting investment banks to hold Bitcoin and offer crypto-based financial services.
Eligible banks—those with $50 million or more in capital—can now seek licenses to serve “sophisticated investors” (those with $250,000+ in liquid assets) with Bitcoin and digital asset products.
The law integrates existing crypto licensing categories into the banking system, allowing institutions to custody BTC, issue tokens, and facilitate crypto transactions under a regulated framework.
“This expands El Salvador’s financial architecture in a secure, supervised manner,” said representative Dania González.
The Ministry of Economy endorsed the legislation, signaling further institutional adoption of crypto in the country.
