Private Credit Tokenization in LatAm

Real world asset tokenization has stopped being an isolated experiment. According to the 2026 Coinbase and EY-Parthenon survey of 351 institutional investors, 64% of asset managers expressed strong interest in tokenizing their own assets this year, up from 40% the year before. Within that growth, private credit (loans, invoices, debt instruments) is the fastest growing category.

The reason is simple. Traditional private credit runs on fragmented processes: origination, payment management, reconciliation, and record keeping are usually scattered across different systems, which makes everything slower and more expensive. Tokenizing that credit means putting those processes on programmable infrastructure, with a level of transparency and liquidity this asset class hasn't had before.

Why private credit is the fastest growing RWA category

Real world asset tokenization is increasingly moving beyond pilots into production. Private credit stands out within that shift because it addresses a real structural gap rather than just adding blockchain rails to an existing product.

The underlying problem in LatAm

Latin America is the ideal setting for this category to take off. SMEs across the region still face high credit spreads and limited access to institutional capital, largely because traditional banks struggle to assess and manage that risk efficiently at scale.

This isn't a new problem. What's new is that the infrastructure to solve it differently now exists: instead of relying exclusively on local banking, an originator can tokenize a portfolio of invoices or loans and open that asset up to global investors, with repayment terms automated on chain.

How private credit tokenization works

In simple terms, the process has four stages:

1. Origination: an originator (a fintech, a factoring company, a credit entity) generates the underlying asset, whether a loan, an invoice, or a debt instrument.
2. Tokenization: that asset is represented as a token reflecting its value, terms, and repayment schedule.
3. Distribution: the token is offered to qualified investors, expanding the universe of who can fund that credit beyond the traditional banking circle.
4. Repayment and settlement: interest and principal payments are automated via smart contracts, reducing counterparty risk and manual administrative work.

What changes for originators and investors

For an originator, tokenizing their credit portfolio means access to a much larger capital pool than what's available locally, plus a real reduction in the operational cost of managing that portfolio. For an investor, it means real time visibility into the asset's performance, something traditional private credit almost never offers.

We covered this topic in depth on Twin Meets x El Dorado, with Guillermo Goncalvez, CEO of El Dorado. Watch the full episode here: https://www.youtube.com/watch?v=MkV7cKy7mJo

What's still unresolved

Being honest about where this category stands is part of understanding it well. There are still open questions: regulatory frameworks for tokenized credit vary widely by country, custody standards for assets representing real debt are still being established, and most platforms are in early stages of institutional adoption. The category is maturing fast, but it isn't settled yet.

FAQ

What is private credit tokenization?
It's the process of representing debt instruments (loans, invoices, credit lines) as digital tokens, which allows their management, distribution, and repayment to be automated on blockchain infrastructure.

How is it different from a traditional loan?
The underlying asset is the same (a payment obligation), but its record keeping, distribution to investors, and payment settlement happen on chain, with more transparency and fewer intermediaries.

Why does it matter for LatAm?
Because the region has a significant credit gap for SMEs, and tokenization allows those originators to connect with global institutional capital that previously had no way to access this asset class.

Is this a new trend?
It's not new as a concept, but 2026 is the year it moved from isolated pilots to larger scale deployments, driven by greater regulatory clarity and maturing custody infrastructure.

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