Latin America explores asset tokenization for investment opportunities

In April 2025, Argentina's Comisión Nacional de Valores (CNV) initiated a public consultation to develop a tokenization regime, paving the way for the digital representation of negotiable securities. This regulatory move signals a shift in the country's approach towards fintech, promoting innovation in investment practices. Concurrently, Ecuador enacted a fintech law in December 2022 that establishes a framework for fintech activities and allows various supervisors to create regulatory sandboxes. The importance of jurisdiction-specific compliance is emphasized, indicating that initiatives like tokenization must be tailored to each country's legal landscape. Furthermore, Brazil has garnered attention for its robust sandbox designed to encourage securities pilots and refine secondary-market processes. Mexico complements this with a framework for novel business models, ensuring investor protections while permitting flexibility for experimentation. As investors look to benefit from the efficiencies tokenization offers, including quicker transaction times and broader access to investment opportunities, the overarching lesson is to carefully navigate legal requirements and engage expert counsel at the outset of these initiatives. Ultimately, while the potential for enhancing financial inclusion and democratization of investment exists through tokenization, the necessity for proper legal frameworks and investor protections remains crucial.