Revolution or Risk? Latin America's Explosive Fintech Growth

Ripio's launch of UXD to growth in blockchain. Investment shifts and innovative solutions in daily wage payments. Latin America's fintech landscape is thriving and transforming.

Aug 07, 2023

Welcome to our weekly newsletter covering the latest news and trends in the Latin American Fintech startup scene.

Ripio launches UXD, the first Latin American Stablecoin linked to the US dollar

Ripio, the Argentine cryptocurrency trading platform, has launched UXD, its new stablecoin tied to the US dollar. This new digital asset positions itself as an alternative solution to protect the savings of Latin Americans from inflation and economic crises.

Dubbed “CryptoDollar,” UXD is the first stablecoin in Latin America linked to the value of the US dollar. This project has been designed especially for Argentinians, a country with an annual inflation rate exceeding 115% in June.

Users of Ripio in Argentina can carry out operations with UXD without assuming any additional cost. Through its digital wallet application, customers can buy, sell, store, send, and receive UXD without charge, thus facilitating access to and managing this currency.

Vía Contxto

Quick News

Ethereum Argentina Announced a Technology Event to Innovate and Tackle Challenges in the Region. Buenos Aires is gearing up to host Ethereum Argentina, the most critical technology event in the region that will bring together over 4,000 blockchain enthusiasts and experts. The Buildathon will take place on August 16 and 17, and the leading conference will be held on August 18 and 19, aiming to exchange knowledge and develop projects that address fundamental challenges in Latin America. (Contxto)

Latin American Fintech Ecosystem: A Challenge in Times of Change? The Latin American fintech ecosystem has experienced significant changes in the last twelve years. According to GP Bullhound’s study The Evolution of the Latin American Technology Ecosystem and Investments (2010-2022), after a record surge in investments and funding in 2021, these indicators decreased in 2022 due to macroeconomic events that shook the region. Startups were forced to adjust their strategies and focus on profitability rather than growth at all costs. (Contxto)

Licify attracts USD$3.4 million with its purchasing platform for the construction sector. Based in Bogotá, Licify has just closed a seed investment round of USD$3.4 million, led by Brick & Mortar Ventures and Accion Venture Lab. The capital injection also included Dash Fund, G2 Momentum Capital, and Columbia University's venture capital fund, where Fernando studied for an MBA. (Forbes)

Sequoia Capital cuts crypto funds nearly three times to focus on early-stage companies. Sequoia Capital, the venture capital giant, has significantly reduced the money in its fund focused on cryptographic companies from USD$585 million to around USD$200 million. The Wall Street Journal gathered information from market sources. The American newspaper also discovered that Sequoia cut its ecosystem fund in half, supporting smaller funds and individual investors, reducing its resources from USD$900 million to USD$450 million. (Tekios)

Payflow facilitates daily wage payments and will invest US$5 million in Peru and Colombia. The startup, offering an ‘instant pay’ model, plans to invest USD$5M in its operations in Colombia and Peru. The company aims to popularize the concept of on-demand salary for formal employees, which allows employees to withdraw their pay corresponding to the days worked irrespective of the company’s payday. (Forbes)

97% of banks believe that blockchain will transform the financial system, according to Ripple. Ripple’s recent report sends shockwaves through the financial industry, revealing that an overwhelming 97% of bankers believe that blockchain and cryptocurrencies will play a pivotal and transformative role in facilitating faster payments within the next three years. Notably, the study also indicates regional variations in the adoption of cryptocurrencies as a payment medium, with only 17% of Latin American bankers expressing optimism about widespread acceptance, contrasting with a more favorable 58% sentiment in Europe. (Be in Crypto)

Loft Secures a New Investor and Reveals Valuation. Loft Group made headlines by securing a whopping USD$100 million investment from a sovereign fund in the Middle East. Adding to an impressive list of investors, they plan to utilize this investment to expand their product range and services, consolidating their position as a leader in the real estate market. (Pipeline)

Qubik was recognized with the 'The Fastest Growing' award at Startup Chile. The Argentine-origin startup Qubik was recognized and awarded by this important accelerator and is expanding to the USA. As a result of Qubik's growth and sustained positioning over the last year, it was awarded the 'The Fastest Growing' prize by Startup Chile, the accelerator that supports hundreds of entrepreneurs in the region. (América Retail)

Latin America stands out with 1 out of every 4 Fintech globally. A recent report by Alianza Fintech Iberoamérica unveiled a remarkable statistic: 1 in every 4 Fintech companies worldwide originates from Latin America. The region’s financial technology sector has witnessed exponential growth, accounting for approximately 26% of all Fintech companies globally, including those in Spain. With 1,635 startups founded in Latin America, this surge in Fintech companies demonstrates the region’s prowess in transforming the financial landscape through technology. (Cointelegraph)

Fintech Education

Cryptocurrency Course. The program is delivered through a series of live, interactive webinar sessions with access to a crypto trading platform to enable you to participate actively in trading sessions. Through extensive work examples, you’ll develop your skills to trade cryptos in real life, with the support from our academic team to ask any questions throughout the journey.
Master of Science in Data Analytics and Financial Technology. The program aims to arm the students with a vast theoretical and practical arsenal of knowledge and analytical skills so that they can comprehend and develop the subject of data analysis and financial technology. The aim is also to educate students appropriately to develop critical thinking with the ultimate objective of producing research on the subject matter.
Online Master in FinTech. The Online Master in FinTech lets us know and learn how technological irruption is reconverting the current financial system. Big Data, Cloud Computing, Artificial Intelligence... technology is here, and it's here to stay. It is essential to know what vertical companies in the FinTech world specialize in; what companies are they? What kind of technology do they use? What is their business model?

Food for Thought

The rise of invisible banking: Latest trends in Digital Finance in LatAm.
In the context of the Digital America Technology and Business Congress Mexico 2023, Juan Bello, VP & Head of Business, LATAM at GlobalLogic, presented the technology trends for the BSFI sectors and highlighted how banking would continue to drive experiences and business, but in an invisible way. (GlobalLogic Latinoamérica)