Tokenization Could Improve Liquidity and Access in Latin America’s Capital Markets, Bitfinex Securities and Tether Suggest

• Tokenization cuts issuance costs and shortens listing times

• RWA tokenization improves transparency and broadens investor access in emerging markets

• Tokenized securities could reach $1.8T–$3T by 2030 (McKinsey projection cited in Bitfinex report)

Tokenization Latin America: RWA tokenization can unlock liquidity, cut issuance fees and widen investor access — read the Bitfinex Securities findings and implications.

What is tokenization Latin America?

Tokenization Latin America is the process of converting real-world assets (RWA) into blockchain-based tokens to improve liquidity and market access across the region. Bitfinex Securities’ Market Inclusion report finds tokenization reduces issuance costs, enhances transparency and can accelerate capital flow into underserved markets.

How does RWA tokenization solve liquidity latency?

RWA tokenization addresses “liquidity latency” — delays and barriers that restrict capital movement — by creating continuous, tradable digital representations of assets. Tokenized instruments enable fractional ownership, lower minimum investment thresholds, and automated settlements that reduce friction for issuers and investors.

Tokenization could solve Latin America’s capital market inefficiencies, boosting liquidity and unlocking new investment opportunities, according to Bitfinex Securities.

Tokenization adoption may solve some of the systemic inefficiencies identified in Latin American capital markets and accelerate investment and capital flow in the region, according to Bitfinex Securities.

Systemic inefficiencies — high fees, complex regulations and structural obstacles such as technological barriers and high startup costs — are slowing investment and hindering capital flow in the region in a phenomenon described in the Bitfinex Securities Market Inclusion report as “liquidity latency.”

The region’s liquidity latency may be reduced by the adoption of real-world asset (RWA) tokenization, which mints financial and other tangible assets on immutable blockchain ledgers. This increases investor accessibility and creates more frequent trading opportunities for previously illiquid instruments.

Financial products tokenized on the blockchain can introduce greater accessibility, transparency and efficiency. Bitfinex Securities reports tokenization can cut issuance costs for capital raises by up to 4% and reduce listing times by up to 90 days, expanding investor access and trading opportunities.

“Tokenisation represents the first genuine opportunity in generations to rethink finance,” said Jesse Knutson, head of operations at Bitfinex Securities. “It lowers costs, accelerates access, and creates a more direct connection between issuers and investors.”

Financial gap in the LATAM region. Source: Bitfinex

Related: RWA protocol exploits reach $14.6M in H1 2025, surpassing 2024

Why does tokenization remove capital access barriers?

Adopting tokenized financial products may open new capital access opportunities for developing economies, says Paolo Ardoino, CEO of Tether and chief technology officer of Bitfinex Securities. Tokenised instruments lower entry costs and simplify compliance-driven distribution, letting a broader base of investors participate.

“For decades, businesses and individuals, particularly in emerging economies and industries, have struggled to access capital through legacy markets and organisations,” Ardoino said. “Tokenisation actively removes these barriers.”

Tokenized products can unlock capital more efficiently and cost-effectively, while offering investors access to higher-yielding, compliance-backed products. Bitfinex was an early adopter of tokenized issuance and secondary trading under El Salvador’s Digital Assets Issuance Law.

Tokenized US Treasury bills were among the first assets tokenized by the platform to enable broad access for savers seeking exposure to the world’s reserve currency.

Tokenized securities growth projections. Source: McKinsey, Bitfinex Securities

Major consulting forecasts cited in the Bitfinex report see tokenization as a multi-trillion-dollar opportunity. McKinsey projections referenced in the report estimate tokenized securities could reach a base case $1.8 trillion to a bull case $3 trillion by 2030.

Magazine: Ethereum is outperforming competitors in the tradfi tokenization race projected at $16.1T total markets.

How can issuers and regulators implement tokenization safely?

Successful implementation requires clear regulatory frameworks, custody standards, and scalable infrastructure. Issuers should prioritize KYC/AML compliance, use regulated digital asset service providers, and adopt standardized token documentation to build trust.

Regulators and market participants should pilot tokenized offerings, collect performance data, and adapt rules to balance investor protection with innovation. Bitfinex’s market inclusion work highlights collaboration between issuers, exchanges and regulators as critical for adoption.

Frequently Asked Questions

How does tokenization improve market liquidity in Latin America?

Tokenization improves liquidity by enabling fractional ownership, 24/7 trading, and automated settlement, which lowers minimum investment thresholds and reduces trading frictions for previously illiquid assets.

What are the main cost savings from tokenizing assets?

Tokenization can cut issuance costs by up to 4% and reduce listing times by as much as 90 days, according to Bitfinex Securities, mainly through automation, reduced intermediaries, and streamlined compliance processes.

Is tokenization regulated in Latin America?

Regulatory approaches vary by country. Some jurisdictions have enacted or piloted digital asset frameworks; market participants should consult local regulators and work with licensed digital asset service providers.

Key Takeaways

• RWA tokenization reduces market frictions: Cuts issuance costs and shortens time-to-market for securities.
• Liquidity latency can be addressed: Fractionalization and continuous trading broaden investor participation.
• Regulatory collaboration is essential: Pilots and clear rules will accelerate safe adoption across Latin America.

Conclusion

Tokenization Latin America offers a practical path to unlock liquidity and expand capital access by converting real-world assets into tradable digital tokens. Bitfinex Securities’ findings underscore measurable cost and time savings and a multi-trillion-dollar market potential for tokenized securities. Market participants should begin measured pilots and coordinate with regulators to realize these benefits.