Blockchain and Tokenization to Release US$ 4.6 trillion in Latin America and Southeast Asia

While major economies are still testing blockchain-based solutions, Latin America (LATAM) and Southeast Asia (SEA) have already adopted this technology at scale. Both regions are among the global leaders in cryptocurrency adoption, with 19.8% at LATAM and 27.3% at SEA, according to the unprecedented study by Valor Capital Group and Credit Saison. In Brazil, the Central Bank is developing the Drex initiative, which aims to tokenize the national economy at scale. Brazil already has one of the world's most advanced digital payments ecosystems, the use of blockchain 1, the country's advanced digital transactions, which represents the 1st blockchain, the country's use of the 1st blockchain, and the country's digitalization of the blockchain.

Meanwhile, Singapore has emerged as a hub of blockchain innovation, with 55% of the population considering cryptocurrencies as a viable payment method.The report highlights that Latin America and Southeast Asia, with a combined population of over a billion people, are at the forefront of the transition from traditional financial systems to blockchain-driven economies.

In addition to consumer adoption, blockchain technology is transforming financial market infrastructure in these regions, driving new efficiencies in payments, trade finance, and asset tokenization.The estimated potential impact on the market is US$ 3.2 trillion, as smart contracts increase security, transparency, and transaction speed.

“International payments, which traditionally take three to five days to settle, can now be completed in seconds with blockchain, eliminating intermediate costs.In addition, asset tokenization is creating a US$ 1.4 trillion market, making real-world assets such as real estate and commodities more liquid and affordable”, says Bruno Batavia, Director of Emerging Technologies at Valor Capital Group.According to Batavia, the implementation of Central Bank Digital Currencies (CBDCs) is being exploited by 98% of global GDP, with Latin America and Southeast Asia leading the practical application in the real world.

Singapore stands out as a pioneer with Project Ubin, a government-backed initiative that integrates blockchain with financial markets.The project has already redefined settlement systems and tested cross-border payments on blockchain in partnership with the Bank of Canada and the Bank of England.

The Next Frontier: Tokenization of Global Trade and Commodities

“With LATAM and SEA playing strategic roles in global trade, the next step in blockchain adoption focuses on commodity tokenization.Indonesia, the world's largest exporter of palm oil and coal, already utilizes blockchain in carbon credit markets through the IDXCarbon initiative.The country's asset tokenization market is expected to reach US$ 88 billion by 2030, with an estimated savings of US$ 300 million in ACHR operational efficiency, said Qin En Looi, Partner at Saison Capital, venture capital arm of Credit Saison.

The study highlights that the rapid adoption of blockchain in these regions presents significant opportunities for investors, fintechs and global financial institutions.By reducing the cost of international remittances (currently double the target of the UN Sustainable Development Goals & increasing financial access for populations without access to banking services, blockchain is emerging not only as a speculative asset but as a key driver of economic modernization.

“This report serves as a fundamental plan for stakeholders seeking to harness the immense potential that these regions offer. Credit Saison has been in Brazil since 2023 and has been present in Southeast Asia for over ten years, with the unique ability to implement investments through private credit and venture capital to support the growth of fintechs and founders, both in debt and equity. Through our experience as an operator in global markets with strong Japanese heritage, partnerships and knowledge exchange are essential to navigate and adapt to local nuances and formulate successful strategies in the market.For Credit Saison, the partners are always open up to sustainable ways.

Visit https://latamsea.com to read the report

About Valor Capital Group

Founded in 2011 and with a presence in New York, Silicon Valley, Rio de Janeiro, Sao Paulo and Mexico City, Valor Capital is a pioneer Venture Capital and Growth Equity fund manager with a “cross-border” strategy, aiming to act as a bridge between the US and Latin American technology markets. Its funds invest in transformative businesses, from early stage startups to expanding companies. Valor is committed to the success of its portfolio companies, offering capital, operational support and global connections.