For millions of people and small businesses across Latin America and the Caribbean, sending money abroad or making cross-border payments remains complex and costly. Some of the most common barriers include high transaction fees, slow processing times, uncertainty about costs and when funds will be made available, as well as limited interoperability and access to digital payment infrastructure.

These inefficiencies have long hindered financial inclusion and imposed significant costs on families and businesses that depend on cross-border transactions. However, in recent years, new digital infrastructures based on blockchain technology have emerged, reducing the number of intermediaries and enabling faster, cheaper, and more transparently value transfer in certain corridors. 

At the center of this transformation is tokenization, a process that uses blockchain to redefine how financial assets are represented, managed, and transferred. 

In recent years, IDB Lab has been supporting this type of innovation across the region to advance financial inclusion, build a digital infrastructure based on blockchain technology (LNet) and improve on cross-border payments.  In this post, we will present the latest trends in tokenization in the region and the opportunities ahead, topics that will be discussed in depth our seminar on tokenization on Nov. 4 during FinnLAC Forum, an IDB Group event, taking place in Miami on November 4–5.

What is Tokenization?

Tokenization refers to the use of blockchain technology to convert rights over an asset —such as money, bonds, or deposits— into digital tokens that can be created, managed, and securely transferred. Among its most prominent applications are stablecoins, central bank digital currencies (CBDCs), tokenized deposits, and real-world assets according to our latest publication Tokenization and Development: Framework and Insights Deck.

Stablecoins are digital assets designed to maintain a stable value via a fiat currency or a basket of liquid assets. While they are part of the broader crypto ecosystem, stablecoins differ fundamentally from volatile cryptocurrencies such as Bitcoin or Ether. Well-designed stablecoins are backed by reserves and aim to maintain price stability, though depegging risks exist and reserve verification standards vary across issuers.

As a result, stablecoins have emerged as a global alternative to cross-border payments and remittances, not only because they are backed by a fiat currency, but also because their underlying blockchain-based technology enables instant on-chain settlement, on-chain real-time confirmation, and lower transaction costs, according to Citigroup’s report Stablecoins 2030.

Stablecoins represent a practical and trusted evolution of digital finance, one that offers efficiency in cross-border payments, remittances, and international transfers with greater confidence.

Leading the Way in Adoption

Latin America and the Caribbean (LAC) has become one of the most dynamic regions for digital-money adoption. High remittance costs, the search for faster and more reliable payment methods, and widespread mobile-technology use have accelerated the rise of stablecoins across the region.

Indeed, LAC now leads the world in stablecoin adoption. According to Fireblocks (2025), 71% of businesses in the region use stablecoins for cross-border payments, and 75% of fintechs and payment-service providers report growing customer demand for stablecoin-based products.

In several countries—including Brazil, Argentina, Mexico, Colombia, Peru, Chile, and Bolivia—stablecoin transactions already account for a significant share of digital commerce and foreign-exchange operations.

Companies such as Braza Group in Brazil, with its BBRL stablecoin, and BanColombia, with COPW, have launched local versions backed by national currencies. Globally, the stablecoin market is expected to reach $1.9 trillion by 2030.

These innovations are turning Latin America and the Caribbean into a testing ground for blockchain and tokenization, where the need for faster, cheaper, and borderless payment systems is driving financial transformation.

Regulatory Challenges

The rise of stablecoins and tokenized money presents significant regulatory challenges for policymakers worldwide. Regulators must balance competing objectives: fostering innovation while maintaining monetary stability, protecting consumers, preventing illicit finance, and managing systemic risks.

Globally, regulatory convergence is accelerating. Europe took a major step with the Markets in Crypto-Assets (MiCA) regulation, which requires 1:1 reserves and licensing for stablecoin issuers. Meanwhile, with the GENIUS Act of 2025, the United States introduced a federal legal framework for payment stablecoins, defining authorized issuers, reserve requirements, and prudential oversight. Together, these developments point toward a more predictable and secure environment for digital innovation.

Across Latin America and the Caribbean, countries such as Brazil, Mexico, and Colombia are advancing regulatory frameworks for fintechs and digital assets, while others are exploring how to integrate these instruments without compromising monetary stability. 

The challenge will be to scale innovation under proportionate supervision—avoiding both overregulation and regulatory gaps.

From Pilots to Scale — Join us at FinnLAC 2025

When properly regulated, tokenized assets and stablecoins backed by transparent reserves and sound compliance can transform financial access across the region. Tokenization, enabled by blockchain, is no longer experimental: banks, fintechs, and corporations are already moving from pilots to scale, applying it to payments, trade, and financing operations.

These topics and many others will take center stage at the FinnLAC Forum 2025, especially during our session on tokenization that will take place on Nov. 4. We will examine the current state of tokenization in LAC, how it is reshaping financial systems, and what it takes to scale responsibly. Stablecoins are the most widespread example, but opportunities go further, from tokenized assets and digital deposits to sustainable finance and new investment models.

If  you are interested to learn more about this and other topics about the future of the digital finance industry, register to attend the FinnLAC Forum 2025. 

Sources:
 Global Blockchain Business Council (GBBC), Digital Asset Glossary (2024).
 Citi, Stablecoins 2030 (2024).
 Fireblocks, Digital Asset Adoption Report (2025).