El Salvador has passed a new regulation that paves the way for large financial institutions to provide Bitcoin and other digital asset services to institutional investors. The law, passed by the country's legislative body, allows financial institutions with capital of no less than $50 million to qualify as investment banks.

These institutions can now apply for a license to provide services priced in Bitcoin and other cryptocurrencies to investors with over $250,000 in liquid assets.
The new framework is based on El Salvador's existing cryptocurrency regulations, which already allow companies to register as Bitcoin service providers, digital asset service providers, or digital asset issuers. The new legislation allows qualified investment banks to add these cryptocurrency licenses to their existing banking licenses.
In practice, it enables well-capitalized institutions to hold Bitcoin, issue tokens, and organize financial instruments related to cryptocurrency without the need to completely establish a new regulatory framework.
According to Deputy Representative Dania Gonzalez, this reform will expand the structure of El Salvador's financial system by establishing a new organized entity that will work alongside traditional banking. This legislation has the support of the Ministry of Economy, indicating that the government seeks to attract more funds into the digital asset system.