03 September Can tokenization unlock market inclusion in Latin America?

Author: Jesse Knutson, Bitfinex Securities, Head of Operations
This article was originally posted finextra

I have been fortunate to have been able to visit Latin America frequently in recent years. And every time I leave, it energised its vibrant, dynamic culture, and the pure sense of entrepreneurial energy and optimism among the people I met.

But what I experienced on earth has always been in stark contrast to the harsh reality of economic data. Today, there are unicorn companies with fewer than 50 people born from Latin America, covering 20 countries and 600 million people. By comparing it, its neighbors are over 1,200 startups, over $1 billion, with the US having just 40% of Latam’s population.

It is undoubtedly true that Latin America has a wealth of resources. But for some reason, the entrepreneur and investment potential is still not truly fulfilled.

This has led to a detailed study of eight Latin American countries to better understand what is hindering the region and what fuel growth can do. In particular, we investigated the role that tokenization can unlock capital and give regions greater participation in global markets. The Latin American Market Inclusion Report spoke to regional experts, including market analysts, lawyers, stockbrokers and others involved in the regional capital markets, to understand the experiences they face when trying to raise between $30 million and $50 million in capital in the local public market.

Our analysis identifies the phenomenon of “liquidity delay” in the region. This refers to the obstacles and inefficiencies of the traditional Ratum capital market that slowed capital flows and hindered investment. In particular, I found out:

Centralized Bank: Over the past five years, it controlled 70% of bank accounts in major Latin American markets before alternative and non-banked financial services (FinTechs) companies emerged.

High price: Such monopolies contribute to the world’s highest banking fees (approximately 17%), and naturally, it curtails both innovation and capital flows.

Bulletin and regulatory hurdles: Many major Latin American economies are ranked step by step in the ease of the World Bank’s business index and have a reputation for the bureaucratic and regulatory complexities that hinder listings and investments.

Limited capital market depth: The region is struggling with a severe funding shortage of entrepreneurship and a deep pool of capital looking for these opportunities.

High startup costs: Raising between $30 million and $50 million means that the average cost is 7%, but often comes with a dollar-excluded advisory service and considerable problematic costs. This added a hurdle combined with regulatory complexity and low liquidity, and strongly blocked new issuances.

Undeveloped Investor Ecosystem: Many in Latin America are not or unable to engage in financial investment opportunities. For example, less than 2% of Colombia’s population are active stock market investors, while 68% of Latinos lack for formal financial education. Also, Peruvian retail investors can pay three times more in fees than institutional investors in the same stock.

Latin American markets have traditionally been “exclusive” in nature and practice. The right to participate was reserved for a minority of privilege. Barriers range from economy (costs) to social (connections), access (particularly international investors), and regulations (intractable and often arcane). The social costs of this situation exceed the economy. These include the continued underestimation of a particular group or region in the formal economy of a region, and sidelings of inadequate communities and demographics, hampering the ability to participate or share in the growth of a region.

It is almost surprising, therefore, that liquidity delays affect entrepreneurship and reduce opportunities for business creators and those who want to invest in them.

However, we are beginning to see significant changes as tokenization grows, which I believe will help us launch the growth potential of Ratum.

Tokenization provides issuers with cost-effective access to global liquidity for businesses of all sizes and circumstances. Additionally, investors can have much more flexibility and freedom of use thanks to the ability of real-time payments, 24/7 trading and the ability to support independent assets. In effect, there is zero barrier for entries on both sides of the transaction: fundraiser and investor.

By reducing issuance costs by up to 50%, increasing 2-4% of capital, reducing listing times by 60-90 days, and enabling fractional ownership, blockchain-based securities can make investments dramatically more comprehensive and efficient.

Of course, it is still in the early days that it fulfills the potential for tokenization, but it is not an exaggeration to say that the financial changes it represents have given the region a wider range of socioeconomic opportunities to overcome historical barriers and promote growth.

Tokenization represents the first true opportunity for a generation that has rethinked finances. It reduces costs, accelerates access and creates more direct connections between issuers and investors. Tokenization represents a practical and available solution. Reduce barriers to business creators and investors’ entry, expanding the role and profits of the market into all sections of society. This is the meaning and aspiration for market inclusion that is no more relevant or urgent for Latin America.

Author: Jesse Knutson, Bitfinex Securities, Head of Operations

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Hongji Feng

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Hongji Feng

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Hongji is a reporter who covers crypto, finance, and tech. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX,…

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August 1, 2025

The crypto market enters August 2025 with mixed interpretations about whether an altcoin season is taking shape.

While Bitcoin remains near its recent highs, some traders are shifting attention toward projects like Tron, Sui, and Pi Coin. Each shows contrasting price action and sentiment, making them part of the debate over the durability of the current altseason trend.

Tron: Steady Growth With Utility

Tron (TRX) has maintained steady traction in recent weeks. The Tron price is around $0.32, according to CoinMarketCap, with a market cap of about $31 billion and daily trading volume of nearly $1.54 billion, up by 44% within the past 24 hours.

July trading showed a stable range between $0.28 and $0.33. This consolidation suggests steady demand despite market volatility. Analysts cite Tron’s DeFi footprint and lower supply compared to competitors as reasons why it continues to attract flows during periods when altcoin season activity rises.

Whale accumulation and consistent activity across Tron’s DeFi applications add to the case for continued relevance. Some research outlets have pointed to its ability to maintain liquidity and support ecosystem projects, which has allowed TRX to stay in the conversation despite stronger competition from the Ethereum and Solana ecosystems.

Sui: Growth Meets Recent Pullback

The Sui price currently sits near $3.58, supported by a market cap of about $12.3 billion and daily trading volume exceeding $2.4 billion. Data shows a modest pullback of about 5% over the past 24 hours, after a month of strong inflows.

Sui Price (Source: CoinMarketCap)

Sui’s object‑based design and parallel execution continue to set it apart among Layer‑1 protocols. On‑chain adoption in DeFi and GameFi has supported TVL growth, though recent price softness has tempered short‑term sentiment. LunarCrush metrics earlier in July showed strong social engagement, reinforcing that traders continue to monitor SUI closely despite the decline.

Analysts suggest late‑2025 could prove important if upcoming integrations and ecosystem expansions deliver new user activity. For now, Sui represents an asset with utility and traction but is facing pressure from broader market sentiment.

Pi Coin: Supply Concerns Pressure Sentiment

The Pi Coin price is trading around $0.4, with recent reports pointing to downward pressure following a July supply unlock.

Pi’s daily volumes remain low compared to Tron and Sui, indicating weaker liquidity. Analysts note that a 17% drop in July coincided with a token unlock event of about 160 million PI, raising concerns about further dilution.

Investor sentiment remains cautious. Without clear use cases or robust DeFi integration, Pi’s price action suggests it is more dependent on community participation and speculative cycles than underlying protocol adoption.

Altcoin Season or Market Pause?

The Altcoin Season Index remains 36, meaning that Bitcoin continues to outperform most altcoins. Yet the steady performance of Tron, the active though volatile market for Sui, and the ongoing debate over Pi Coin show that interest in mid‑cap assets persists.

Some traders argue that altseason requires a broader rotation into tokens like these. Others believe current conditions represent selective trading rather than a full cycle.

Whether this develops into a sustained altcoin season remains uncertain. Tron offers steady liquidity and usage, Sui continues to build out infrastructure despite recent declines, and Pi Coin reflects the risks of supply shocks.

Together, these tokens capture the range of outcomes possible in an altseason: steady performers, growing platforms, and speculative risks. For traders, they illustrate how the cycle can extend beyond Bitcoin—even if the breadth of participation remains limited.

A large number of token unlocks are expected to hit the altcoin market this week, and Dogecoin is one of those with the most notable unlocks happening this week. With the uncertainty in the market, token unlocks like these could affect the Dogecoin price. However, with deep liquidity, there is a high possibility that the meme coin is able to absorb this massive unlock without much effect.

Large Dogecoin Unlock To Hit The Market

In an X post, Wu Blockchain reported that there are a number of single token unlocks that are set to go live in the altcoin market over seven days. However, the ones of concern are the linear unlocks that will continue into the first week of August, putting hundreds of millions of dollars into the market.

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One of the major unlocks shown was for Dogecoin, which is supposed to see approximately 95.5 million DOGE tokens added to its supply. Going by the current supply, this would be an additional 0.06% added to the circulating supply. At the current market price, this would be around $22.9 million worth of tokens being added.

Naturally, token unlocks can impact the price of a digital asset, and Dogecoin is no different. However, looking at the daily trading volume of the cryptocurrency, which is in the billions of dollars, as well as the deep liquidity across major crypto exchanges, it is likely that the DOGE market will absorb this new supply without much fuss.

Additionally, not all of the 95 million tokens will be sent into circulation at once. Given that it’s a linear unlock, meaning the coins will be released into circulation in smaller batches, it is much easier for the market to absorb the supply without any negative impact to the Dogecoin price.

Other Tokens Being Unlocked

While the Dogecoin token unlock is significant, it is not the largest token unlock expected to happen this week. The crown goes to Solana, which is expected to see 465,770 tokens unlocked. This stash is worth a staggering $87 million and translates to 0.09% of the total supply.

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Next on the list is the TRUMP token at 4.89 million tokens worth $50.13 million. This accounts for 1.67% of the total supply. Then, it is followed by Worldcoin (WLD), with an expected 37.23 million tokens to be unlocked, worth $44.67 million, and translates to 2.16% of the total supply.

Other major unlocks include TAO with 50,400 tokens worth $21.49 million. There’s also Avalanche (AVAX) with 700,000 tokens worth $18.07 million, and Celestia (TIA) with 6.96 million tokens worth $14.20 million.

Featured image from Dall.E, chart from TradingView.com

President Donald Trump is reportedly intensifying his pro-crypto agenda with plans to expand access to trillions from retirement funds and ease taxation for everyday crypto use.

According to a June 17 report by the Financial Times, sources familiar with the matter say the President could soon issue an executive order allowing 401(k) retirement plans to invest in cryptocurrencies, gold, and private equity.

This initiative would mark a major shift in US retirement policy. Traditionally, 401(k) plans are limited to conventional assets like stocks and bonds. By including crypto and other alternatives, the White House aims to modernize investment options and tap into the growing appeal of digital assets.

A 401(k) is a tax-advantaged retirement plan in which US employees contribute a portion of their wages to an investment account. The new executive order is expected to direct federal regulators to evaluate and revise existing rules that currently restrict access to alternative assets.

If implemented, the move could lead to policies supporting direct crypto ownership, exposure through ETFs, and investments in blockchain-focused companies.

Omar Kanji, a partner at crypto venture firm Dragonfly, called the development the “biggest unlock” for the digital asset sector.

He noted:

“US retirement assets sit at $43 trillion, with $9 trillion in 401ks. With Trump opening the flooodgates, if crypto sees just a 1% allocation from 401ks, that’s ~$90B in fresh inflows. The retirement market is enormous, and the real party is about to get started.”

Bitcoin tax relief

In a separate development, the Trump administration is exploring a “de minimis” tax exemption for small crypto transactions. This would remove capital gains tax obligations for minor purchases made with digital assets like Bitcoin.

White House Press Secretary Karoline Leavitt confirmed that the administration is actively considering the policy as part of its strategy to promote crypto usage.

Currently, US tax law treats every crypto transaction as a taxable event that requires reporting of even small profits. The proposed exemption would mirror existing rules that waive taxes on foreign currency gains under $200, reducing the administrative burden for users making low-value purchases.

Custodia Bank CEO Caitlin Long emphasized the magnitude of this potential change, stating that it could surpass the impact of the GENIUS Act, a recently approved pro-crypto legislation.

If enacted, the exemption could accelerate Bitcoin’s role as a functional payment method rather than just an investment vehicle.

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