🌎 Nubank is the most important crypto company in LATAM

Plus: Trends in LATAM payments 💳

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Frontera EC, Abraham Rivv & Abraham Cobos
November 20, 2024

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Frontera is the newsletter that keeps you updated on what’s happening in crypto in LATAM, just the reality of how the industry is evolving in our region. 

If you want to build products, invest, or grow in LATAM, this is your place. 

Nubank, crypto giant no one is talking about

The Brazilian native Nubank is the most important fintech company in the world and we tend to forget it when we talk about retail fintech companies implementing crypto. 

As Lenny said in his podcast in May 2024, “Nubank is bigger than Coinbase, Robinhood, Affirm, SoFi, and Lemonade combined”, (top recommended episode to understand Nubank’s product BTW). 

Here’s some interesting data about their performance according to their Q3 earnings report: 

Basically they’re crushing it.

It might be a stretch to say Nu is slowly becoming a crypto bank, but looking at the facts I think it’s inevitable. 

They are not new to crypto, they’ve been consistently launching features since 2021. Here’s a short timeline of the most important crypto launches they’ve done: 

Their most recent release is the crypto swapping feature in their app, in their news release they explain that: 

“Nubank customers who hold cryptocurrencies will be able to trade Bitcoin (BTC), Ethereum (ETH), Solana (SOL), or Uniswap (UNI) for digital dollars USDC and vice versa[...]this option offers reduced fees compared to buying and selling in fiat currency.”

As you can see they might be one of the most advanced fintech products with a crypto offering and a gigantic distribution for non-crypto natives. 

This is how the DeFi mullet looks like: the largest fintech company in the world growing their crypto offering. 

It’s exciting to speculate on what might be the end state of Nubank in crypto; a proprietary Ethereum Layer 2? An account abstraction wallet where all their products live? The largest self-custodial wallet in the world? 

We’ll see that happen in the next few years, Nu will keep crushing it and growing across the world. It’s just a matter of time before the next news announces their continued growth in crypto infrastructure and product. We’ll be there to tell you about it.

Onwards, 

📰 Latam Crypto News 📰

  1. Credit cards dominate with $240B processed, led by Visa, Mastercard, and American Express.

  2. Brazil’s PIX is a game-changer instant payment system with $80B in instant transfers.

  3. Debit cards total $50B, bridging cash and digital payments.

  4. Digital wallets like Mercado Pago and Ualá surged to $45B, promoting financial inclusion.

  5. Cash vouchers ($45B) are key for the unbanked, enabling e-commerce.

  6. Bank transfers ($25B) remain vital for high-value transactions in traditional markets.

Big space for stablecoin adoption

Regulatory & policy

🇺🇾 Uruguay's President signed a project to regulate cryptocurrency, recognizing it as a virtual asset and giving the Central Bank power to supervise providers. This country could set a precedent for crypto regulation in Latin America, boosting investor confidence despite mixed adoption.

🇦🇷 The Argentinian Stock Market allows investment in BTC and ETH through mutual funds, enabling Argentines to access the crypto market without exchanges.

🇨🇴 Colombia’s Central Bank Delays Bitcoin Regulation. Over a year after crypto exchange regulations were proposed, the Central Bank remains hesitant, delaying progress due to unclear frameworks and crypto risk concerns.

🇨🇴 Colombia: Bitcoin ETF May Debut on Stock Exchange. The Colombian Stock Exchange is considering Bitcoin ETFs, aiming to modernize finance, attract global investment, and regulate crypto access.

🇸🇻 El Salvador Offers New Debt Buyback Amid Bitcoin Gains. El Salvador plans to repurchase $1 billion in external bonds, leveraging Bitcoin profits (up 85%) to reduce interest payments and improve fiscal stability.

🇭🇳 Honduras: Blockchain Proposed for Elections. Julio Larios suggests using blockchain for election transparency. Despite resistance from financial regulators, he emphasizes its potential for democratic reform. 

Companies

🌎 Higlobe and Bitso Partner for Payments. Higlobe joins Bitso Business to enhance cross-border payments in Latin America, offering crypto services, stablecoin rewards, and digital economy solutions.

🇧🇷 World Launches in Brazil. World (formerly Worldcoin) begins operations in São Paulo with 10 World ID points, targeting issues like identity theft and deepfakes. 

🇲🇽 Bitso Adds Bitcoin Lightning Payments. Bitso enables instant, low-cost Bitcoin transactions via the Lightning Network for 8M+ users, supporting remittances and local payments.

🇦🇷 Argentina: Rappi to Deliver Worldcoin Orbs. Rappi will distribute Worldcoin Orbs in 2025, letting Argentines verify identity and earn WLD tokens, boosting regional adoption.

Community

This hackathon had more than 710 projects.

⚽ The Solana Copa América has come to an end. Solana Copa América was the largest web3 startup competition ever held in LATAM.

Here are the results:

  • 🌍 8 countries represented

  • 🚀 Over 150 startups registered

  • 🏆 16 selected for live competitions

  • 💰 $50,000 in prizes

  • 📺 More than 9.5k views

  • 🔥 Engagement exceeding 400%

In the next edition we’ll share a detailed analysis of the winners 👀 👀 👀 👀.

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