El Salvador Passes Law Allowing Banks to Hold BTC

El Salvador has taken another step in crypto integration by passing a law that lets investment banks hold Bitcoin and offer digital asset services.

The legislation defines investment banks as institutions with $50 million+ in capital, separating them from traditional banks.

These entities can now obtain licenses to serve accredited investors (those with $250,000+ in liquid assets) with Bitcoin-based financial instruments.

Notably, the law doesn’t create a new regulatory framework but instead allows banks to adopt existing crypto licenses—such as Bitcoin service provider or digital asset issuer—within their traditional operations.

This means institutions can custody BTC, issue tokens, and structure crypto deals under a single, regulated structure.