The latest data debrief issued by Kaiko, a provider of digital assets market data, has found that while there is retail movement in Latam regarding crypto assets, most liquidity is directed to “real world” use cases. These activities include remittances and stablecoin-based income generating investment options. Also, payments are a major focus, with Bitso (Bitcoin) and Mercado bitcoin being the top traders in this area.
Kaiko: Latam focuses on Crypto differently
There has been much written about crypto assets and their uses by Latam nations. Many people mention them as a vital part of the fight against inflation. Kaiko, an asset market data provider for cryptocurrency, recently released data that showed that large amounts of volume in the region correspond to real-world uses of crypto.
Two exchanges account for most of the volume traded. Bitso is based in Mexico and Mercado Bitcoin is based in Brazil. Bitso ranks first with processing volumes of 20 million to $30 millions consistently and a peak at $60 million during a single session in June. Mercado Bitcoin, on the other hand processes fewer cryptocurrency trades because it is only available in Brazil. Its platform has a trading volume of up to 4 million per day during the period.
Market Trends and Specialities
Kaiko found that Latam is different than other regions. It has a unique set of features that focus on the mentioned use cases. Bitso, one the largest crypto unicorns of the region, mainly bases its activities in the remittance segment. This is why XRP accounts for 60% of volumes that are traded on the exchange.
The exchange established a partnership with Ripple in 2020 to send almost instant remittances between Mexico and the U.S., using Ripple’s on-demand liquidity and several banking partners. Bitso is now one of the largest crypto remittance agencies in the area, with more than $1 million in operations in June. But, Bitso plans to open more markets in the region.
Recently, the company expanded to Colombia and announced the launch of its remittance services in the country, using Circle’s USDC as part of this solution. Bitso also launched yield-generating stablecoin accounts to attract customers from Argentina. This is part of Bitso’s strategy to lure people from Argentina.
Mercado Bitcoin announced recently that it will expand its services in Mexico and strengthen its presence there.
What do you think about the information presented in Kaiko’s Latam report? Comment below.
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