Crypto Activities in Latam Countries are Mostly for 'Real World' Use
The latest report issued by Kaiko, a digital asset market data
company, reveals that the retail movement of crypto assets in Latam is mostly for "real world" use. The activities mostly include remittances,
stablecoin-based investment options, and payments. Bitso and Mercado Bitcoin
are among the leaders in volumes traded in Latam.
Applications of Crypto Assets in Latam Countries
Crypto assets in Latam
countries are said to be the lifeline in the fight against inflation
and devaluation. A new data report issued by Kaiko, a cryptocurrency
asset market data provider, has found that a significant part of the volumes
moved is related to real-world applications of crypto, rather than retail
trading.
Most of the volume is traded on two exchanges. Mexico-based
Bitso and Brazil-based Mercado Bitcoin. Bitso is processing trading volumes at
an average of USD 20 million to USD 30 million, having peaked at USD 60 million in
one session in June. Mercado Bitcoin processes fewer crypto trades as its operations is limited to
Brazil. The
platform averages USD 4 million in trading volume per day.
Trading Trends and Parameters
Latam presents a set of parameters that focus on the real use
cases and is therefore different from other regions, as observed by Kaiko.
Bitso is one of the crypto unicorns in the region, with activity mostly in the
remittance sector. 60% of the volume traded on the exchange involves XRP.
The exchange established a partnership with Ripple in 2020 to
enable instant remittances between Mexico and the U.S. using Ripple’s on-demand
liquidity and several banking partners. This has established Bitso as one of
the biggest crypto remittance exchanges in the region, processing more than USD
1 billion in operations by June. The exchange is looking to expand into more
countries in the region.
The company has expanded to Colombia recently
and announced the launch of its remittance services in the country
using Circle’s USDC. Bitso has launched stablecoin yield-generating
accounts to entice customers from countries like Argentina, which is currently
battling high levels of inflation and devaluation.
Mercado Bitcoin has recently announced it is expanding its
services to Mexico to strengthen its operations in the region.
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