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Advances in Real-World Asset Tokenization in Latin America with Expedit Capital

Advances in Real-World Asset Tokenization in Latin America with Expedit Capital

Thursday, January 25, 2024

The real-world asset tokenization #RWA market is expected to reach a value of over $13 billion by 2030

Real-world asset tokenization #RWA is a growing market that involves transforming traditional financial assets into digital tokens. This market is expected to reach a value of over $13 billion by 2030. 

Tokenization involves transferring real-world assets into the digital realm through the use of blockchain technology Blockchain is a decentralized and transparent system that stores information in encrypted blocks, making it immutable and programmable through smart contracts.

In Latin America, there have been significant advances in real-world asset tokenization. Expedit Capital is one of the key players in this space, focusing on bringing traditional finance closer to decentralized finance (DeFi) through the tokenization of real assets.  They offer services that allow for the tokenization of various assets, including stocks, debentures, fiat currencies, agricultural commodities, real estate, and luxury watches.

The tokenization of real-world assets in Latin America has several applications:

1. Democratizing Investments: Tokenization allows for the distribution of financial securities in the form of tokens, making them accessible to retail investors. Previously, these assets were limited to qualified investors with high purchasing power. Tokenization enables fractional ownership and affordable investment opportunities for a wider range of investors.

2. Streamlined Financing: Real-world assets can be used as collateral in decentralized lending platforms, eliminating the need for traditional financial institutions. This allows individuals and businesses to obtain loans by using their assets as collateral, providing liquidity without selling their assets.  This decentralized lending model has gained popularity among retail investors and institutions alike.

3. RWA for Farmers: In Latin America, companies like Agrotoken offer tokenization services for agricultural products such as corn, wheat, and soy. This enables farmers to access credit during the pre-planting season, facilitating the acquisition of essential agricultural inputs. The tokenized assets are used to reload a Visa-branded card, which can be used to purchase the necessary products. At the end of the harvest, the farmer provides the promised grains, and the debt is settled.

These advances in real-world asset tokenization in Latin America are bridging the gap between traditional finance and the digital world. They are democratizing access to investments, enhancing the efficiency of financial services, and opening up new opportunities for investors and businesses.

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Learn more:

1. [Real World Asset Tokenization: Bridging Traditional Finance and the Digital World](https://www.linkedin.com/pulse/real-world-asset-tokenization-bridging-traditional-finance-boucault)

2. [2023 in Review: The Transformative Year for Real-World Asset Tokenization | by Plume Network | Dec, 2023 | Medium](https://medium.com/@plumenetwork/2023-in-review-the-transformative-year-for-real-world-asset-tokenization-fa77eab6b2b7)

3. [Expedit Capital | LinkedIn](https://mx.linkedin.com/company/expedit)

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