El Salvador Volcano Bonds fund
Overview
El Salvador Volcano Bonds are dollar-denominated digital debt securities issued by the government of El Salvador, carrying a 6.5% annual coupon over a 10-year term with a five-year lock-up. First announced in November 2021 and repeatedly delayed, the bonds gained a legal framework under the country's 2023 Digital Assets law and began issuance in 2025 on the Bitfinex Securities platform. Roughly half the proceeds are earmarked to purchase Bitcoin and half to fund geothermal ("volcano") energy and Bitcoin-mining infrastructure tied to the planned Bitcoin City. The offering is associated with the Bitfinex and Tether ecosystem.
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Frequently asked questions
What are El Salvador Volcano Bonds?
El Salvador Volcano Bonds are digital debt securities proposed by the government of El Salvador, structured as dollar-denominated bonds with a Bitcoin-denominated coupon.
What is the purpose of the El Salvador Volcano Bonds?
The proceeds are intended to fund the construction of Bitcoin City, including geothermal energy infrastructure, and to purchase Bitcoin.
When were the El Salvador Volcano Bonds announced?
The bonds were originally announced in November 2021.