Welcome to Latam Insights Encore, a deep dive into Latin America’s most relevant economic and crypto news from the past week. This edition explores how the recently approved XRP ETF might be the starting point for a larger participation of Ripple in Latin America.
Latam Insights Encore: How XRP's Latam Takeover Might Start From Brazil
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Latam Insights Encore: XRP ETF Gives Ripple the First Regulated Product for Institutions to Leverage in Brazil
Brazil, a country where cryptocurrency has grown immensely as part of the traditional finance system, is set to become the entry doorway for XRP to become a larger asset in Latam.
The launch of one of the first XRP exchange-traded funds (ETFs) in the Brazilian stock exchange B3 offers Brazilian institutions the opportunity of purchasing the asset without holding it directly, bringing the perfect opportunity for companies to enter into this market without having custody-related worries.
Read more: XRP ETF Launches in Brazil, Securing Regulated XRP Access for Investors
This would expand the interest in Ripple in the region, as institutions would add to the demand for the asset that is already coming from the retail sector. According to Bitso, one of the largest exchanges in the area, 9% of all the purchases registered in 2024 involved XRP. This number surpassed key cryptocurrencies like ETH and SOL, showing the potential of XRP in the region.
Previously, Ripple had pointed to Latam as a region with potential for payments and remittances, while not promoting its token as a reserve cryptocurrency, likely due to the problems that the company had been facing in the U.S. with the Securities and Exchange Commission (SEC).
In October, Ripple CEO Brad Garlinghouse praised the state of crypto regulation in Brazil. At the time, he stated that Brazil was “one of the fastest-growing markets in the adoption of crypto assets and blockchain.” Furthermore, he stressed that the Central Bank of Brazil had been “been very constructive in relation to regulation,” creating opportunities for cryptocurrency companies to take advantage of.
Read more: Ripple CEO Praises the State of Cryptocurrency Regulation in Brazil
Now, this move allows Ripple to get past retail and focus on institutions, now trouble-free, enticing them to add the cryptocurrency to their portfolios with this new double functionality: an investment instrument and remittance facilitator.
