- FalconX expands crypto services in Brazil with BTG Pactual and Mercado Bitcoin support.
- Brazil’s institutional crypto use rises as regulations and central bank pilots progress.
- Global crypto demand grows as FalconX extends trading and custody to Latin America.
FalconX, a top-tier institutional digital asset prime broker, has decided to expand in Latin America. The relocation is aimed at some of the largest financial institutions in the region, like Brazil-based BTG Pactual and Mercado Bitcoin. To support the booming institutional cryptocurrency markets in Latin America, FalconX plans to offer these institutions its entire range of prime brokerage services.
This growth follows the recent expansions to Asia-Pacific and Europe, which have made the company an infrastructure partner, capable of going global for supporting institutional adoption of crypto. One country to note is the Latin American region, whose digital assets are the fastest-growing in the region, due to progressive regulation, economic influences, and a tech-savvy financial ecosystem.
FalconX Brings Prime Brokerage Services to Latin America
FalconX’s platform offers comprehensive services, including deep global liquidity, capital efficiency tools, and an enterprise-grade trading infrastructure. These services facilitate the expansion or scaling up of digital asset operations in terms of risk management and institutions’ compliance demands. Through this growth, local banks and asset managers will have access to integrated trading, credit, and custody solutions to suit the Latin American market.
Brazil has become a central hub for this initiative, supported by its early regulatory steps toward digital asset integration. The nation’s central bank is testing a digital real, and market regulators continue to create frameworks that can include cryptocurrencies. Chainalysis, a blockchain analytics company, reported that the institutional crypto market in Brazil grew by 48% between late 2023 and early 2024, highlighting strong market momentum.
The collaboration with BTG Pactual and Mercado Bitcoin allows FalconX to strengthen its presence in the country. BTG Pactual, the biggest investment bank in Latin America, has already embraced crypto with its trading platform and security token offerings. The largest Brazilian crypto exchange, Mercado Bitcoin, adds the experience of both individual and institutional customers. Such partnerships give FalconX market access and operating support.
Related: FalconX and Standard Chartered Team Up to Expand Crypto Reach
Growing Institutional Demand for Crypto in Latin America
Josh Barkhordar, Head of Americas Sales at FalconX, points out the fast pace of crypto adoption in Latin America. He attributes favorable regulation frameworks and economic factors as two major players that have driven an interest in institutions. Barkhordar also notes that the demand for digital asset services is not isolated to Latin America but reflects a global trend, with FalconX expanding across multiple regions.
This regional expansion is part of wider changes in the world. With traditional financial institutions’ increasing integration of digital assets, FalconX’s growth represents an unmet need for institutions. The company’s prime brokerage model streamlines the digital asset trading practice by providing a combination of execution, financing, and custody within a single platform. The solution makes operations less complicated for clients and enables management of an extensive portfolio.
Nevertheless, navigating Latin America’s evolving regulatory landscape and economic volatility requires robust risk management. FalconX’s success will be based on adjusting to local conditions and upholding national security standards. The firm’s phased approach, which began in Brazil, provides a model for cautious expansion in the upcoming crypto markets.
Founded in 2018, FalconX secured a valuation of $8 billion following a $150 million funding round in 2022. Its investors include Tiger Global, GIC, and B Capital. The company is further expanding its global presence through the growing institutional demand for digital assets worldwide.
