Insights on asset tokenization in Latin America  

InLaw Alliance - Asset tokenization is a process based on blockchain technology that converts real-world assets into digital certificates (tokens) that can be traded through the aforementioned chain and with smart contracts. In other words, any physical asset—real estate, raw materials, financial assets, works of art, NFTs, among others—is divided into digital tokens that represent a portion of the value of that asset. Thus, any investor can purchase only a fraction of the tokenized asset without having to acquire it in its entirety. In this way, this technology democratizes access to traditional investments, offering greater flexibility and accessibility in capital markets.

According to global estimates, the tokenized asset market could grow exponentially in the next decade: it is projected to grow from about $0.6 trillion in 2025 to nearly $19 trillion in 2033. Other estimates even suggest that by 2030 it could reach around 10% of global GDP (about $16 trillion).

Despite its potential, the adoption of tokenization in Latin America faces significant challenges. One of the main ones is the regulatory framework. States must establish clear rules to protect investors, prevent risks, and strengthen competition. Many countries still lack specific laws on tokens or digital assets, leading to debate over their legal nature, classification, issuance, service providers, trading rules, custody, insolvency rules, and, in particular, cases in which financial assets are represented by tokens. Despite this scenario, there have been some regulatory advances in the region.

In Brazil, Law No. 14,478 of December 21, 2022 establishes the regulatory framework for virtual asset services, requiring providers such as exchanges and custodians to obtain prior authorization from a federal authority and comply with fundamental principles such as free competition, adequate governance, information security, and consumer protection.

In Colombia, there is currently a bill that establishes a clear and flexible regulatory framework that seeks to promote technological innovation, ensure transparency, protect users, and prevent financial crimes. It provides for the creation of a public registry of Virtual Asset Service Providers (PSAV), with obligations regarding identification, risk disclosure, money laundering prevention, and tax compliance, without recognizing crypto assets as currency or regulating the underlying technology, thus preserving technological neutrality.

In Argentina, General Resolution No. 1069/2025 of the National Securities Commission (CNV) represents a significant regulatory advance in the modernization of the capital market by establishing an experimental regime for the tokenization of negotiable securities. This framework, articulated through a one-year regulatory sandbox, allows for the digital representation of instruments backed by real assets—such as debt, financial trusts, and closed-end funds—under strict conditions of traceability, cybersecurity, and investor protection, excluding more complex or sustainable instruments. The regulations adopt the principles of technological neutrality and functional equivalence, granting digital tokens legal treatment comparable to that of traditional securities and requiring the segregation of tokenized assets from virtual asset service providers (VASPs).

Under these assumptions, it is necessary to discuss two forms of tokenization: financial assets and real estate.

In the case of financial asset tokenization, there are interesting developments in this area. In Colombia, Banco Davivienda, together with the IDB, carried out a tokenization of bonds worth 110 million pesos within the sandboxes of the Colombian Financial Superintendency.

For raw materials, Atómico 3 was created, a Paraguay-based platform that promotes the tokenization of mining assets, especially lithium, using blockchain technology and international standards such as NI 43-101. Its model seeks to democratize the financing of the commodities sector through digital instruments backed by certified reserves, ensuring traceability, transparency, and governance, with regional and international reach.
In the tokenization of real estate assets, great advances have been made in the region. For example, ReitBZ, developed by BTG Pactual, was the first token backed by a traditional financial institution to distribute dividends through smart contracts on blockchain. Based on a portfolio of recovered properties in Brazil and managed by Enforce, it allowed global investors to access the real estate market with greater efficiency and liquidity. In its first cycle, it generated more than $220,000 in revenue, distributing nearly $88,000 in dividends. This initiative marked a milestone in the institutional tokenization of real assets in Latin America.

Similarly, real estate tokenization processes are being developed in countries such as Colombia and Argentina. A clear example is the processes developed by several companies that are part of Colombia Proptech, which have committed to tokenizing real estate in Colombia. On the other hand, Argentine proptech Simplestate, in partnership with cryptoexchange Buenbit, promoted a fractional investment model through the tokenization of rental apartments in Buenos Aires. Through participation contracts and blockchain technology, they offered investors tokens representing economic rights over the properties, without implying registered ownership.

Investor appetite for tokenized assets is also growing in the region.
In Latin America, approximately 19% of adults currently invest in cryptocurrencies, with particularly high adoption levels in countries such as Argentina (31%) and Brazil (24%). According to recent data, about 12.1% of the regional population owns digital assets, representing around 57.7 million people. In addition, a survey conducted by Binance in late 2024 revealed that 95% of crypto investors in the region plan to increase their holdings in 2025, reflecting growing confidence in this type of asset.

This demonstrates that asset tokenization, as an emerging application of blockchain technology, is taking on an increasingly important role. Both the public and private sectors recognize that these technological developments increase the efficiency and speed of transactions, crucial aspects in an increasingly digitized global economy, where analog models are giving way to digital infrastructures that offer greater security, transparency, and traceability through public and unalterable records.

In this scenario, it can be concluded that asset tokenization is not only a growing reality, but also a phenomenon that requires a prompt and adequate regulatory response in Latin America, capable of reconciling innovation with investor protection. Consequently, it is essential that lawyers understand these regulatory changes and remain vigilant in order to play an active role in building a new digital economy based on tokenized assets.

Authors:

Jorge Armando Corredor Higuera
Lawyer and specialist from the National University of Colombia, Master (LL.M.) in international law, investments, trade, and arbitration from Heidelberg University (Germany), and Doctor of Law from Carlos III University in Madrid, with a thesis focusing on securities market law and new technologies. I have a diploma in the General Code of Procedure from the National University of Colombia and a virtual diploma in national and international arbitration from the Bogotá Chamber of Commerce. Associate lawyer at Rincón-Cuéllar & Asociados.

Christian Santiago Guzmán López
Lawyer from the National University of Colombia, final-year economics student at the National University of Colombia. Member of the commercial bar association, secretary of the intellectual property commission of the International Chamber of Commerce (ICC) in Colombia. Former participant and coach of the international arbitration and alternative dispute resolution group at the National University of Colombia. Lawyer at Rincón-Cuéllar & Asociados.

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