A new report suggests that tokenizing real-world assets (RWA) could help resolve structural inefficiencies in Latin American capital markets and accelerate investment flows.
Bitfinex Securities El Salvador’s Latin America Market Inclusion Report, released on August 20, said RWA tokenization can cut issuance costs for capital raises by up to 4% and reduce listing times by as much as 90 days.
RWA Expected to Break Market Inefficiencies
The report highlights the main hurdles for regional markets. High fees, complex bureaucracy, and limited investor participation have slowed capital flows and restricted access for both entrepreneurs and investors.
According to the report, these issues are “liquidity latency,” which describes how outdated structures and regulatory bottlenecks prevent markets from functioning efficiently.
Tokenization is presented as a direct response to these barriers. By digitizing bonds, equities, or funds on blockchain systems, ownership becomes decentralized and more efficient. Each token represents a unit of an asset, allowing fractional participation and broader access.
According to the report, tokenization could reduce issuance costs to as little as 2–4% of raised capital. Listing times could fall from several months to 60–90 days. These improvements could help create more inclusive financial markets across Latin America. Jesse Knutson, Head of Operations at Bitfinex Securities, said tokenization will significantly change Latin America’s financial industry.
“Tokenization represents the first genuine opportunity in generations to rethink finance. It lowers costs, accelerates access, and creates a more direct connection between issuers and investors.”
El Salvador Leads the Way
Bitfinex notes that Latin America is uniquely positioned for tokenization because of regulatory progress in several countries. El Salvador recognized Bitcoin as legal tender in 2021 and later passed the Digital Assets Issuance Law (LEAD) in 2023, creating a regulated framework for tokenized securities.
Bitfinex was the first platform to receive a digital asset service provider license under LEAD. Since then, it has facilitated trading of tokenized US Treasury bills, designed to give global investors a hedge against the US dollar.
“For decades, businesses and individuals, particularly in emerging economies and industries, have struggled to access capital through legacy markets,” said Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities. “Tokenisation actively removes these barriers.”
The latest push also aligns with El Salvador’s broader strategy to position itself as a global leader in digital finance. Earlier this month, the country’s Bitcoin Office signaled plans to introduce Bitcoin-focused banks, which could open the door to deposit, lending, and payment services conducted entirely in cryptocurrency.
Analysts note that such institutions, combined with tokenized securities initiatives, could strengthen El Salvador’s role as a testing ground for alternative financial models and accelerate the integration of blockchain-based systems into mainstream markets.
Coinbase
eToro
eToro
eToro
eToro
COCA wallet
UpHold
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
