According to a report from CoinWorld, a new report indicates that tokenizing real-world assets (RWA) helps address structural inefficiencies in Latin America's capital markets and accelerates investment flow. The Latin America Market Inclusion Report published by Bitfinex Securities El Salvador on August 20 states that RWA tokenization can reduce the issuance costs of capital raising by up to 4% and shorten the time to market by up to 90 days. RWA is expected to break through market inefficiencies. The report highlights the main barriers in the regional market. High costs, complex bureaucracy, and limited investor participation slow down capital flow and restrict access for entrepreneurs and investors. The report describes these issues as 'liquidity delays,' detailing how outdated structures and regulatory bottlenecks hinder effective market operation. Tokenization is seen as a direct response to such barriers. By digitizing bonds, stocks, or funds on a blockchain system, ownership becomes decentralized and more efficient. Each token represents a unit of an asset, allowing for fractional participation and broader access. The report states that tokenization can reduce issuance costs to only 2%-4% of the raised capital. The time to market can be shortened from months to 60-90 days. These improvements could help create a more inclusive financial market throughout Latin America. Jesse Knutson, Chief Operating Officer of Bitfinex Securities, stated that tokenization will significantly change the financial industry in Latin America. El Salvador is leading the way. Bitfinex points out that due to regulatory progress in some countries, Latin America has a unique advantage in tokenization. El Salvador recognized Bitcoin as legal tender in 2021 and passed the Digital Asset Issuance Law (LEAD) in 2023, creating a regulated framework for tokenized securities. Bitfinex is the first platform to obtain a digital asset service provider license under LEAD. Since then, it has facilitated the trading of tokenized U.S. Treasury bonds, aiming to provide global investors with tools to hedge against the dollar. The latest initiative also aligns with El Salvador's broader strategy to position itself as a global digital finance leader. Earlier this month, the country's Bitcoin office announced plans to introduce Bitcoin-centered banking, which could open the door to deposits, loans, and payment services fully conducted in cryptocurrency. Analysts note that such institutions, combined with tokenized securities programs, can strengthen El Salvador's role as a testing ground for alternative financial models and accelerate the integration of blockchain-based systems into mainstream markets.

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