The new report suggests that symbolizing real-world assets (RWA) can help resolve structural inefficiencies in Latin American capital markets and accelerate investment flows.
Bitfinex Securities El Salvador’s Latin American Market Inclusion Report, He said that RWA tokenization, released on August 20th, will reduce the issuance cost of capital raising by up to 4%, and could reduce listing times by 90 days.
RWA expected to break market inefficiency
This report highlights the main hurdles in the regional market. High fees, complex bureaucracy, and limited investor participation slow the flow of capital for both entrepreneurs and investors, and limit access.
According to the report, these issues are “liquidity delays.” This explains how outdated structures and regulatory bottlenecks prevent the market from functioning efficiently.
Tokenization is presented as a direct response to these barriers. By digitizing the bonds, stocks, or funds in a blockchain system, ownership is decentralized and more efficient. Each token represents an asset unit, allowing fractional participation and wider access.
According to the report, tokenization could reduce issuance costs to 2-4% of the capital raised. Listing times can decrease from a few months to 60-90 days. These improvements will help create more comprehensive financial markets across Latin America. Jesse Knutson, business director at Bitfinex Securities, said tokenization would significantly change the Latin American financial industry.
“Tokenization represents the first true opportunity for a generation to rethink finance: reduce costs, accelerate access and create more direct connections between issuers and investors.”
El Salvador leads
Bitfinex points out that Latin America is positioned independently for tokenization due to regulatory advances in several countries. El Salvador recognized Bitcoin as a legal currency in 2021 and later passed the Digital Asset Issuance Act (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 tokenized US Treasury bills designed to give global investors hedges against the US dollar.
“For decades, businesses and individuals, particularly in emerging economies and industries, have struggled to access capital through legacy markets,” says Paolo Ardoino, CTO of Bitfinex Securities. “Tokenization actively removes these barriers.”
The latest push is also in line with El Salvador’s broader strategy to establish himself as a global leader in digital finance. Earlier this month, the country’s Bitcoin office signaled plans to introduce Bitcoin-centric banks. Bitcoin-centric banks can open the door to deposit, lending and payment services fully implemented in cryptocurrency.
Analysts point out that, coupled with such institutions and tokenized securities initiatives, it can strengthen Salvador’s role as a test ground for alternative financial models, and accelerate the integration of blockchain-based systems into mainstream markets.
Post-RWA tokenization could reshape the LATAM market: Bifinex report first appeared on Beincrypto.