Asset Tokenization Gains Traction in Latin America as Financial Systems Seek Transparency

• Latin America is integrating blockchain for asset tokenization, transforming real estate, stocks, and bonds into digital tokens.
• Tokenization automates processes, reducing fraud, cutting costs, and ensuring transactions are publicly verifiable via blockchain.

Latin America’s financial sector is adopting blockchain-driven asset tokenization to modernize outdated structures.

A report by Ava Labs and Mastercard outlines how converting physical assets—such as real estate, stocks, or bonds—into digital tokens on platforms like Avalanche could reduce fraud, streamline transactions, and expand financial participation.

How can asset tokenization transform Latin America’s financial systems?

Ava Labs co-authored a report with @Mastercard to examine how tokenization is driving efficiency, inclusion & transparency, underscoring Avalanche's role in this transformation. 🧵👇 https://t.co/dIHBSgQkFt

— Ava Labs 🔺 (@AvaLabs) January 22, 2025

Tokenization replaces manual processes with automated blockchain protocols. Each token acts as a digital certificate of ownership, recorded immutably on a decentralized ledger.

This eliminates intermediaries, cuts costs, and ensures transaction histories remain publicly verifiable. In Brazil , Drex—a central bank-led platform—has enabled direct settlements between financial institutions, bypassing legacy systems.

The region’s unique challenges make tokenization a practical fit

Roughly 70% of Latin America’s population lacks full access to banking services, according to World Bank data. Distrust in traditional institutions persists, yet adoption of digital tools—like instant payment systems—has surged.

Blockchain’s inherent transparency aligns with this shift, offering a middle ground between skepticism and demand for accessible solutions.

Real estate tokenization exemplifies the trend. By converting property titles into tradeable digital assets, blockchain lowers entry barriers for smaller investors. Transactions that once required weeks of paperwork now occur in minutes.

Similarly, banks like Itaú and Santander are exploring tokenized assets to attract younger, digitally native clients.

Mastercard’s Walter Pimenta notes that standardized frameworks, such as the company’s Crypto Credential program, are critical for scaling adoption. “Clear rules build trust,” he says. 

“They let users interact confidently, whether transferring funds or trading tokens.”

Regulatory clarity remains a work in progress. Brazil’s central bank has taken early steps by piloting tokenization projects, while Chile and Mexico are evaluating legal frameworks. José Augusto Antunes Filho of Itaú emphasizes that banks must adapt to shifting demographics:

“A new generation expects digital-first services. Institutions can’t afford to lag.”

Latin America’s embrace of tokenization reflects broader trends. The region ranks among the top adopters of digital payments and crypto remittances globally.

While hurdles persist—including uneven internet access and regulatory fragmentation—blockchain’s potential to reshape finance is no longer theoretical.