Tokenization Promises 4% Cost Cuts for LatAm Markets

• Bitfinex Securities identifies tokenization as a solution to inefficiencies in Latin America’s capital markets.
• The report highlights cost reduction and accelerated listing times as key benefits for issuers and investors.

On August 21, 2025, Cointelegraph reported that Bitfinex Securities released a report advocating blockchain-based asset tokenization as a solution to systemic inefficiencies in Latin America’s capital markets. The report highlights “liquidity latency,” a term introduced by Bitfinex to describe how high fees, regulatory complexities, and technological barriers slow economic activity and restrict investment flow in the region.

The firm argues that tokenizing real-world assets, such as bonds and equities, could alleviate these inefficiencies. According to the report, blockchain tokenization improves investor access and creates new trading opportunities. Bitfinex claimed that issuers could reduce capital-raising costs by up to 4% and shorten listing times by as much as 90 days through tokenization.

Jesse Knutson, Head of Operations at Bitfinex Securities, emphasized the tangible benefits of this technology, stating that it “lowers costs, accelerates access, and creates a more direct connection between issuers and investors.” Bitfinex Securities views these advantages as transformative for Latin America’s economic growth.

Paolo Ardoino, CEO of Tether and CTO of Bitfinex, highlighted the removal of barriers to economic activity through tokenization. He noted that businesses and individuals in emerging markets have historically faced challenges accessing capital, which blockchain tokenization actively addresses.

The report's release coincides with a growing interest in blockchain-based financial instruments in Latin America. Stablecoins are increasingly being adopted as tools for financial stability amid economic challenges such as hyperinflation and currency devaluation. According to research, stablecoins accounted for over 90% of exchange activity in July 2025. As of the latest data, 57.7 million people across Latin America hold cryptocurrencies, and institutions are capturing demand by using stablecoins predominantly for cross-border payments.

As of August 21, 2025, 15:11 UTC, Tether USDt (USDT) is trading at $1, with a 0.006% decrease in 24-hour trading volume. Meanwhile, USD Coin (USDC) is trading at $1, with a 0.016% decrease as of 15:12 UTC, according to market data.