The study, built on expert interviews and regional analysis, identifies systemic barriers to Latin American capital markets, ranging from relatively high fees and complex bureaucratic hurdles, to limited market depth and low financial literacy. These barriers are seen as contributing to the difficulties experienced by entrepreneurs and investors from accessing fair, efficient capital markets in the region.
The Report identifies a phenomenon of “liquidity latency” in the region, which refers to the current obstacles and inefficiencies in traditional LATAM capital markets that have slowed the flow of capital and hindered investment. Factors that have contributed to this include high fees, complex regulations, and limited market participation. Structural issues including working hours, technological barriers, high start-up costs, and bureaucratic and regulatory hurdles have also been identified as posing challenges to business and investment growth in the region.
The Bitfinex Securities Market Inclusion Report includes analysis, findings and experts from eight different Latin American countries including Argentina, Brazil, Chile, Colombia, El Salvador, México, Panamá and Perú.
Tokenisation is presented as offering a solution to the “liquidity latency” issues identified in Latin America. Tokenised assets digitise ownership of bonds, equities or funds, by issuing tokens on a blockchain, where each token corresponds to a share or unit of the fund. This structure allows for decentralised ownership and management together with multiple other advantages such as accessibility, transparency and efficiency.
By reducing issuance costs to as little as 2-4% of capital raised, cutting listing times to 60-90 days, and enabling fractional ownership, blockchain-based securities can make investing dramatically more inclusive and efficient.
“Tokenisation represents the first genuine opportunity in generations to rethink finance,” said Jesse Knutson, Head of Operations at Bitfinex Securities. “It lowers costs, accelerates access, and creates a more direct connection between issuers and investors.”
With regulatory advances in countries like El Salvador, Argentina, and Brazil, the report suggests Latin America is uniquely positioned to embrace tokenised markets. In 2021, for instance, El Salvador became the first country to recognise Bitcoin as legal tender, and despite recent changes in the law, digital asset technology remains firmly entrenched in the country’s economy. In 2023, El Salvador passed the Digital Assets Issuance Law (LEAD), creating a fully regulated framework for the tokenisation of assets.
Bitfinex Securities calls this not only a financial shift, but a broader socio-economic chance for the region to overcome historical barriers and drive growth.
As indicated in the Report, tokenisation technology could improve accessibility for both businesses seeking capital and investors through lowering the cost of investing and raising capital, accelerating the pace of listings, and providing greater efficiency, accessibility and democratisation of investment, and expanding financial inclusion. Tokenisation could open a brighter opportunity for the region, and the Report underscores and dive into these possibilities.
To access the report click here: [ go.bitfinex.com/market-inclusion-report]
About Bitfinex Securities
Founded in 2021, Bitfinex Securities seeks to apply the technological benefits of the digital asset industry to global capital markets. Through the facilitation of real-time settlement, 24/7/365 trading, access to global liquidity, and the ability to self-custody assets, Bitfinex Securities allows for more efficient, cheaper, and easier interactions between investors and issuers.
Media Contact for Bitfinex Securities
Email: [email protected]
The post appeared first on Bitfinex blog.
