Bitfinex Securities points out that there are some systemic inefficiencies in the Latin American capital markets, such as high fees, complex regulations, and technological barriers, that hinder investment and capital flow in the region. The adoption of tokenization could effectively address these issues and increase investment opportunities.
The report states that tokenization can increase investor accessibility and trading opportunities by minting real-world assets on an immutable blockchain ledger. The blockchain tokenization of financial products can enhance transparency and efficiency while reducing the issuance costs and time for capital raising.
Jesse Knutson, the head of operations at Bitfinex, stated that tokenization represents an opportunity to rethink finance, significantly lowering costs and accelerating connections between issuers and investors.
Related:
Tokenization removes capital access barriers for developing economies
Ardoino, the CTO of Bitfinex Securities, stated that tokenized financial products open up new capital access opportunities for developing economies, making them more efficient and cost-effective.
"Tokenization effectively removes these barriers."
This is a multi-trillion dollar opportunity anticipated by some of the world's largest consulting firms, with McKinsey estimating that the tokenized securities market alone could reach $3 trillion by 2030.
