Tokenization could unlock capital markets growth in Latin America

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, 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.

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