From the perspective of Expedit Capital, specializing in innovative financial solutions, we explore how these technologies are revolutionizing the global and Latin American (LatAm) landscape, with a particular focus on the issuance of Regulated Security Tokens (STOs).  This article, based on Deloitte's "Blockchain and AI Payments " report and complemented with recent research, analyzes the opportunities, challenges, and potential of these technologies to democratize access to investment and accelerate sustainable development.

The Convergence of Blockchain and AI: A New Financial Paradigm

Deloitte's report highlights that Blockchain and AI are transforming the payments industry by improving the efficiency, security, and personalization of transactions. Blockchain, with its ability to ensure immutability and transparency of records, eliminates intermediaries, reduces costs, and speeds up processes. AI, meanwhile, optimizes fraud detection, automates compliance processes, and personalizes user experiences through real-time data analysis.

In the context of Expedit Capital, these technologies are fundamental to Regulated Security Tokens, which represent tokenized financial assets (such as fractions of real estate properties or participations in green energy projects) registered and regulated under legal frameworks, such as those established by the SEC in the US or the CNMV in Spain, or equivalent regulations in LatAm, such as those of the SIF in Colombia, the CNV in Argentina or the CVM in Brazil. Security Tokens allow investors to participate in high-value projects with greater accessibility, liquidity, and transparency, while blockchain ensures traceability of transactions and AI optimizes risk management and regulatory compliance.

Opportunities for Real Estate and Green Energy Projects

1. Democratization of Investment

Real estate and green energy projects, traditionally characterized by high entry costs, are being democratized thanks to Security Tokens. Blockchain makes it possible to fraction assets, such as a residential building or a solar plant, into tokens representing small stakes, accessible to retail investors. For example, a US$10 million real estate project can be divided into 100,000 tokens of US$100 each, allowing investors in LatAm to participate with minimum amounts.

AI complements this process by analyzing market behavior and investor preferences, personalizing offers, and optimizing resource allocation. In LatAm, where access to capital is a challenge, regulated Security Tokens offer an attractive alternative to traditional instruments, such as mutual funds or bonds, which are usually restricted to institutional investors.

2. Reducing Costs and Increasing Efficiency

The Deloitte report highlights that blockchain eliminates intermediaries through Smart Contracts, which automate processes such as the transfer of property or payment of dividends. In a real estate project, a smart contract can release funds to developers once the completion of a construction phase is verified, reducing administrative costs and default risks.

In the green energy sector, smart contracts can manage automatic payments to investors based on the energy production of a solar or wind plant, using real-time data processed by AI. This is particularly relevant in LatAm, where traditional financial infrastructure can be slow and costly, especially in cross-border transactions.

3. Transparency and Trust

The immutable nature of blockchain ensures that every transaction, from the issuance of a Security Token to the payment of dividends, is recorded in a transparent and verifiable manner. This is crucial in LatAm, where the perception of corruption and lack of trust in financial institutions can discourage investment. Regulated Security Tokens, backed by blockchain, offer a level of traceability that fosters investor confidence.

AI, meanwhile, improves transparency by monitoring transactions in real time to detect anomalies or potential fraud. For example, AI algorithms can identify suspicious patterns in token trading, alerting regulators and protecting investors.

4. Impact on Sustainability

Green energy projects, such as wind farms or solar plants, are essential to meet sustainability goals in LatAm, a region vulnerable to climate change. Security Tokens allow capital to be channeled to these projects efficiently, while AI optimizes their operation, such as predictive maintenance of wind turbines or energy demand management.

In countries such as Brazil, Mexico, and Chile, which are leading the energy transition in the region, regulated security tokens can attract foreign and local investment, financing projects that not only generate financial returns but also contribute to decarbonization.

Challenges and Risks

Despite its benefits, the adoption of blockchain and AI in Security Tokens faces challenges, especially in LatAm, where regulatory frameworks and technological infrastructure are still developing.

1. Regulatory Risks

The Deloitte report highlights that blockchain and AI are subject to strict regulations, such as those of the FATF for money laundering prevention and those of the EU under GDPR for data protection. In LatAm, regulators are starting to address Security Tokens, but the lack of harmonization between countries creates uncertainty. For example, while Brazil, El Salvador, and Mexico have advanced in regulations for digital assets, other countries, such as Bolivia, maintain severe restrictions.

Expedit advocates working with regulators to establish clear frameworks that protect investors without stifling innovation. This includes adopting international standards, such as those of the SEC, adapted to local realities.

2. Technological Risks

The blockchain's reliance on cryptographic keys and AI on biometric data poses security risks. If a private key is stolen, an investor could lose access to his or her tokens. Similarly, misuse of data by AI systems could compromise privacy.

To mitigate these risks, Expedit promotes the use of Zero-Knowledge Proofs (ZK Proofs), which allow transactions to be verified without exposing sensitive information, and Web3 solutions that distribute identity verification among multiple nodes, reducing points of failure.

3. Education and Adoption

In LatAm, a lack of familiarity with blockchain and Security Tokens may limit their adoption. Many retail investors are unaware of how tokens work or distrustful of digital platforms. Expedit is committed to financial education, offering resources and workshops to empower investors and build confidence in these technologies.

The Future of STOs in LatAm and the World

Deloitte's report projects significant growth in the remittance and cross-border payments market, reaching US$913 billion and US$428 billion, respectively, by 2025. This growth reflects the demand for fast, secure and low-cost solutions, which Security Tokens can meet by facilitating real-time value transfers using stablecoins or digital currencies.

In real estate, Security Tokens are gaining traction in developed markets, such as the US and Europe, where platforms have successfully tokenized properties. In LatAm, pilot projects in Brazil and Mexico are exploring the tokenization of real estate assets, with a focus on affordable housing and commercial developments.

In the green energy sector, Security Tokens are financing renewable projects in countries such as Chile, where abundant solar and wind resources are attracting global investors. For example, a solar project in the Atacama Desert could issue Security Tokens to finance its construction, offering investors returns based on the sale of energy to the grid.

Expedit sees LatAm as a strategic market for Security Tokens, given its economic growth potential and need for inclusive financial solutions. By combining blockchain for token issuance and management, AI for optimization and compliance, and a regulated approach to ensure security, Security Tokens can unlock billions in capital for projects that transform the region.

The convergence of blockchain and artificial intelligence is redefining financial transactions and the financing of real estate and green energy projects. Regulated Security Tokens represent a unique opportunity to democratize investment, reduce costs, increase transparency, and accelerate the transition to a sustainable future. In LatAm, where traditional barriers to capital are significant, Security Tokens offer a way to empower investors and catalyze economic development.

Expedit is at the forefront of this revolution, working with strategic partners, regulators, and investors to build a more inclusive and efficient financial ecosystem. As blockchain and AI continue to evolve, regulated Security Tokens are positioned as a key pillar to finance the future, not only in LatAm but around the world.

For more information on how Security Tokens can transform your investments, contact us and explore our blog to stay up to date with the latest trends in innovative finance.