Fury for Bitcoin: a major South American exchange to offer digital assets

The São Paulo Stock Exchange adds digital assets

The Brazilian stock exchange, one of the 20 most important in the world, plans to include Bitcoin and cryptocurrencies, in addition to other related products in the year 2022.

Some of the proposed proposals are: investment advice, custody of digital assets and an ETF or index fund. This last product would be added to others of its kind already existing in the country and which have had good results.

Sao Paulo-based Brazilian stock exchange B3 has announced its intentions to enter the cryptocurrency market next year.

In a presentation from the president of B3, Gilson Finkelsztain, the company said that it will explore the areas of “asset tokenization,” custody of digital assets and cryptocurrencies as a service, while considering services to facilitate over-the-counter (OTC) trade, and access to liquidity centers. “

B3 also anticipates the launch of a cryptocurrency-related exchange-traded fund (ETF), but has not yet established the index that this potential new ETF will track. Finkelsztain said that the exchange does not plan to be a crypto exchange, but simply to provide services to investors in cryptocurrencies, perhaps through what is known as ‘financial derivatives’. “It is natural for us to expand into the unregulated world of cryptocurrencies,” said Finkelsztain.

The president of the Sao Paulo Stock Exchange announced that they are in the development of the tokenization of financial derivatives that are already listed on the brokerage house, in order to be able to provide digital guarantees with respect to the existing instruments within the organization . In this way, exchange operations can be carried out more efficiently and safely for all buyers and sellers.

Bitcoin in São Paulo
Bitcoin in São Paulo

This is not the first approach of the Brazilian stock market to the blockchain world. Already in October of this same year, the Central Bank of Brazil said that B3 could operate as the blockchain leader for the smart contract system in a probable cryptocurrency of Brazil regulated by the Central Bank (CBDC).

To date, a total of five Brazilian ETFs have been launched. Three of these five were launched by Hashdex, an exchange in the country. The remaining two were launched by QR Capital, a financial technology company.

Of these funds, the so-called “QBTC11,” an ETF based on the world’s largest cryptocurrency, generated profits of more than 100 percent through the end of November this year. On the other hand, QETH11 outperformed more than 76 percent, while two other ETFs, called ETHE11 and BITH11, outperformed 58 percent.

Yanina Orrego, CEO of Capital Ediciones, told Infobae: “For traditional exchanges to start adopting cryptocurrencies is a very difficult step to take at all, but it can greatly benefit cryptocurrencies. Exchanges and traditional banks are some of the biggest enemies of the blockchain world ”.

In general, he said, “their interests are opposite. That means that they will seek to move money from cryptocurrencies, to stocks (for example), but never the other way around. With these types of movements, although they attract more investors, they are also giving free diffusion to cryptocurrencies, and increasing their level of adoption ”.

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Fury for Bitcoin: a major South American exchange to offer digital assets

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