Update Aug. 21, 2:23 p.m. UTC: This article has been up to date to incorporate a paragraph on Latin American stablecoin adoption.
Tokenization adoption might resolve a number of the systemic inefficiencies recognized in Latin American capital markets and speed up funding and capital stream within the area, in keeping with Bitfinex Securities.
Systemic inefficiencies, together with excessive charges, advanced laws and structural points resembling technological obstacles and excessive startup prices, are slowing funding and hindering capital stream into Latin American capital markets, in a phenomenon dubbed “liquidity latency,” in keeping with the Bitfinex Securities Market Inclusion report, revealed on Thursday.
The area’s liquidity latency subject could also be solved by the adoption of real-world asset (RWA) tokenization, which refers to monetary and different tangible property minted on the immutable blockchain ledger, rising investor accessibility and buying and selling alternatives for these property.
Financial merchandise tokenized on the blockchain introduce extra accessibility, transparency and effectivity, together with reducing issuance prices for capital raises by as much as 4% and reducing itemizing occasions by as much as 90 days, Bitfinex stated. The firm stated tokenization might increase investor entry and create extra buying and selling alternatives.
“Tokenisation represents the primary real alternative in generations to rethink finance,” Jesse Knutson, head of operations at Bitfinex Securities, stated within the report. “It lowers prices, accelerates entry, and creates a extra direct connection between issuers and traders.”
Related: RWA protocol exploits attain $14.6M in H1 2025, surpassing 2024
Tokenization removes capital entry obstacles for growing economies: Paolo Ardoino
Adopting tokenized monetary merchandise might open new capital entry alternatives for growing economies, in keeping with Paolo Ardoino, CEO of Tether and chief expertise officer of Bitfinex Securities.
“For many years, companies and people, notably in rising economies and industries, have struggled to entry capital by legacy markets and organisations,” stated Ardoino.
“Tokenisation actively removes these obstacles.”
He added that tokenized merchandise might unlock capital extra effectively and cost-effectively whereas giving traders entry to higher-yielding merchandise backed by compliance and regulatory approvals.
Related: Ex-White House crypto director Bo Hines takes Tether advisory function
Bitfinex was the primary change to obtain a digital asset service supplier license beneath El Salvador’s new Digital Assets Issuance Law, which allowed the platform to subject and facilitate secondary buying and selling of tokenized property.
Tokenized US Treasury payments had been among the many first property tokenized by the platform, to allow “actually anybody to hedge their financial savings towards the world’s reserve forex.”
Some of the world’s largest consulting companies see tokenization as a multi-trillion-dollar alternative.
Tokenized securities alone might attain a possible $3 trillion market by 2030 within the bull case and $1.8 trillion within the base case, in keeping with predictions from McKinsey, cited within the Bitfinex report.
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