Asset tokenization is poised to revolutionize financial systems in Latin America, driving efficiency, inclusivity, and transparency. A report co-authored by Mastercard and Ava Labs highlights the technology's potential for increased transaction speed, fractional ownership, and reducing risks associated with traditional financial practices. In developing markets like Latin America, this can lower barriers for unbanked individuals to access capital markets. The transfer of ownership of non-cash assets, such as real estate, could enhance participation in financial systems, especially given that countries like Brazil, Argentina, and Mexico are among the top nations in crypto adoption. However, local regulators have yet to fully adapt to the digital economy. The integration of decentralized finance (DeFi) through asset tokenization offers new lending and trading opportunities, despite the challenges posed by regulatory uncertainty and technological complexities. Overall, the report advocates for a concerted effort to address these challenges in order to realize the socio-economic benefits of asset tokenization in Latin America.

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