Tokenization could solve Latin America’s capital market inefficiencies, boosting liquidity and unlocking new investment opportunities, according to Bitfinex Securities. Update Aug. 21, 2:23 p.m. UTC: This article has been updated to include a paragraph on Latin American stablecoin adoption. 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. Read more
As the US regulator explores streamlined rules for securities tokenization, Citadel Securities urges a focus on meaningful innovation. The US Securities and Exchange Commission’s (SEC) plan to streamline securities tokenization may sound promising, but it is unlikely to benefit investors unless it delivers genuine innovation and efficiency, according to market maker Citadel Securities. “Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage,” Citadel wrote in a statement to the SEC’s Crypto Task Force, as reported by Bloomberg. Tokenization — the process of representing real-world assets on a blockchain with digital tokens — is often touted for its potential to reduce costs and boost efficiency by minimizing the role of intermediaries, shortening settlement times and enabling fractional ownership of financial assets. Read more
Though pitched as improving financial accessibility, data shows that RWA's current ownership remains concentrated among high net worth participants. Tokenization could open new opportunities for retail investors to access traditionally restricted asset classes, according to Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, who called it “very important for financial inclusion.” Speaking at the Consensus 2025 event in Toronto, Kerbrat said that some real-world assets, such as real estate and private equity, are available only to up to 10% of the US population. “You need to be an accredited investor to invest in private equity right now,” he said. “How many people can afford a house or an apartment in New York?” he elaborated. “But you can get a piece of it with fractionalization, through tokenization. And so we think it makes it a lot easier to be exchanged, a lot more accessible for everybody.” Read more
Tokenization is gaining real traction as BlackRock, Libre, and MultiBank make billion-dollar moves, signaling the shift from theory to execution. Tokenization of real-world assets (RWAs) is evolving from an abstract concept to a practical financial tool as institutional players increasingly test and deploy blockchain-based infrastructure at scale. This past week alone saw a flurry of announcements from both traditional financial institutions and blockchain-native firms advancing their RWA initiatives. On April 30, BlackRock filed to create a digital ledger technology shares class for its $150 billion Treasury Trust fund. It will leverage blockchain technology to maintain a mirror record of share ownership for investors. Read more