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, including high fees, complex regulations and structural issues such as technological barriers and high startup costs, are slowing investment and hindering capital flow into Latin American capital markets, in a phenomenon dubbed “liquidity latency,” according to the Bitfinex Securities Market Inclusion report, published on Thursday.
The region’s liquidity latency issue may be solved by the adoption of real-world asset (RWA) tokenization, which refers to financial and other tangible assets minted on the immutable blockchain ledger, increasing investor accessibility and trading opportunities for these assets.
Financial products tokenized on the blockchain introduce more accessibility, transparency and efficiency, including cutting issuance costs for capital raises by up to 4% and cutting listing times by up to 90 days, Bitfinex said. The company said tokenization could expand investor access and create more trading opportunities.
“Tokenisation represents the first genuine opportunity in generations to rethink finance,” Jesse Knutson, head of operations at Bitfinex Securities, said in the report. “It lowers costs, accelerates access, and creates a more direct connection between issuers and investors.”
Related: RWA protocol exploits reach $14.6M in H1 2025, surpassing 2024
Tokenization removes capital access barriers for developing economies: Paolo Ardoino
Adopting tokenized financial products may open new capital access opportunities for developing economies, according to Paolo Ardoino, the CEO of Tether, and the chief technology officer of Bitfinex Securities.
“For decades, businesses and individuals, particularly in emerging economies and industries, have struggled to access capital through legacy markets and organisations,” said Ardoino.
“Tokenisation actively removes these barriers.”
He added that tokenized products could unlock capital more efficiently and cost-effectively while giving investors access to higher-yielding products backed by compliance and regulatory approvals.
Related: Ex-White House crypto director Bo Hines takes Tether advisory role
Bitfinex was the first exchange to receive a digital asset service provider license under El Salvador’s new…
Click Here to Read the Full Original Article at Cointelegraph.com News…