tl;dr
A Bitfinex Securities report highlights that tokenizing real-world assets can reduce issuance costs by up to 4% and cut listing times by 90 days in Latin American capital markets. The report identifies challenges like high fees, bureaucracy, and limited investor participation causing market ineffici...
A new report by Bitfinex Securities highlights how tokenizing real-world assets (RWA) could address structural inefficiencies in Latin American capital markets and boost investment flows. The Latin America Market Inclusion Report, released on August 20, indicates that RWA tokenization can reduce issuance costs for capital raises by up to 4% and shorten listing times by as much as 90 days.
The report identifies major challenges in regional markets such as high fees, complex bureaucracy, and limited investor participation. These create "liquidity latency," where outdated systems and regulatory bottlenecks hinder efficient market functioning. Tokenization offers a solution by digitizing assets like bonds and equities on blockchain platforms, decentralizing ownership and enabling fractional investment. This process could lower issuance costs to 2–4% and cut listing periods from several months to 60–90 days, fostering more inclusive financial markets across Latin America.
Jesse Knutson, Head of Operations at Bitfinex Securities, emphasized tokenization’s transformative potential, describing it as the first significant opportunity in generations to rethink finance by reducing costs, accelerating access, and creating a direct link between issuers and investors.
El Salvador emerges as a front-runner in this movement, having adopted Bitcoin as legal tender in 2021 and enacted the Digital Assets Issuance Law (LEAD) in 2023 to regulate tokenized securities. Bitfinex was the first to receive a digital asset service provider license under LEAD and has since facilitated trading of tokenized US Treasury bills, offering global investors a hedge against the US dollar.
Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, noted that tokenization dismantles long-standing barriers that have blocked access to capital for businesses and individuals, especially in emerging economies. El Salvador’s ongoing push to become a hub for digital finance includes plans by its Bitcoin Office to launch Bitcoin-focused banks, potentially offering crypto-based deposit, lending, and payment services.
Industry analysts observe that combining such banking initiatives with tokenized securities could position El Salvador as a testing ground for novel financial models, accelerating blockchain integration into mainstream markets and reshaping the future of finance in the region.