Tokenization Could Cut Issuance Costs by 4% in Latin American Markets

Tokenization has the potential to transform capital markets in Latin America by reducing friction and enhancing access, according to a report jointly released by Bitfinex Securities and Tether on August 21, 2025. The report highlights how real-world asset (RWA) tokenization can convert tangible assets into digital tokens on blockchain platforms, enabling more efficient capital flows, lower costs, and broader participation from investors. Bitfinex Securities estimates that tokenization can cut issuance costs by up to 4% and reduce listing times by as much as 90 days, significantly accelerating the time it takes for assets to reach the market [1].

The report defines tokenization in Latin America as a mechanism to digitize traditional assets such as real estate, infrastructure, and government securities, thereby unlocking liquidity in markets historically constrained by high transaction costs, complex regulations, and technological limitations. These inefficiencies, termed “liquidity latency” by Bitfinex Securities, hinder investment and capital flow. Tokenization, by enabling fractional ownership and continuous trading, allows a broader investor base to participate and reduces minimum investment thresholds, thus enhancing market inclusivity [1].

According to Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, tokenization actively removes barriers to capital access, particularly in emerging economies. “For decades, businesses and individuals, particularly in emerging economies and industries, have struggled to access capital through legacy markets and organizations. Tokenisation actively removes these barriers,” he stated [1]. The benefits extend beyond cost and time savings, offering investors access to higher-yielding products backed by transparent and regulated frameworks.

Bitfinex Securities has already implemented tokenization in practical settings. The platform was among the first to tokenize U.S. Treasury bills under El Salvador’s Digital Assets Issuance Law, providing broader access for savers to the world’s reserve currency [1]. The report emphasizes that successful implementation of tokenized assets requires clear regulatory frameworks, custody standards, and scalable infrastructure. Issuers are advised to prioritize KYC/AML compliance, use regulated digital asset service providers, and adopt standardized token documentation to foster trust and ensure compliance [1].

McKinsey’s projections, cited in the report, suggest that the tokenized securities market could reach $1.8 trillion in a base-case scenario or up to $3 trillion in a bullish case by 2030 [1]. This underscores the scale of opportunity that tokenization presents for capital markets in the region and globally.

Despite the potential, the report warns that regulatory approaches vary across Latin American countries. Some jurisdictions have enacted or are piloting digital asset frameworks, but market participants are encouraged to consult local regulators and work with licensed service providers to ensure compliance [1]. The report advocates for collaborative efforts between issuers, exchanges, and regulators to design adaptive rules that balance innovation with investor protection.

Tokenization in Latin America is not just about technology—it is about rethinking the very structure of capital markets. By reducing the cost of entry, increasing transparency, and accelerating capital deployment, tokenization could serve as a catalyst for economic growth in the region. The key to unlocking these benefits lies in measured pilots, regulatory alignment, and infrastructure development. As Bitfinex Securities and Tether argue, the future of capital markets in Latin America may be more digital, more inclusive, and more efficient than ever before.

Source: [1] Tokenization Could Improve Liquidity and Access in Latin America’s Capital Markets, Bitfinex Securities and Tether Suggest (https://en.coinotag.com/tokenization-could-improve-liquidity-and-access-in-latin-americas-capital-markets-bitfinex-securities-and-tether-suggest/)