- Ripple drives digital asset growth in the Americas as institutions embrace crypto in response to market changes.
- North America’s crypto market reaches $1.2T in transactions, fueled by major institutional investors seeking alternatives.
- LATAM’s currency struggles push crypto adoption, with Ripple expanding as digital assets gain popularity in the region.
Ripple is at the forefront of the growth of the digital asset industry in the Americas region. In a recent X post, Ripple also pointed out that as the need for digital assets rises, more and more institutions are seeking to adapt to the changing environment of the crypto market.
According to a recent report, North America has become one of the most active regions for cryptocurrencies since investors look for options other than conventional investments. According to Chainalysis, the region recorded $1.2 trillion in cryptocurrency transactions in the year to June 2022, making North America the biggest market for cryptocurrency.
North America remains the most active region in the crypto market with institutional investors where transactions of over $1 million contributed to 76.9% of total trade. This change shows how major market participants are starting to engage with digital assets in more meaningful fashion.
Ripple Expands in LATAM
The company is expanding in Latin America (LATAM) as digital assets are the solution to weak fiat currencies. These four countries, Argentina, Brazil, Mexico, and Venezuela have been the biggest markets, where inflation and currency risks push both, the local and institutional buyers towards cryptocurrencies.
According to data, Latin America accounts for 7.3% of the global cryptocurrency market and is the seventh largest hub globally for crypto trading and use. Colombia, Chile, and Peru are integrating their stock exchanges to encourage more foreign investments, but low liquidity forces many LATAM investors to look at digital assets.
While the use of cryptocurrencies is on the rise, regulation in the Americas has to play catch up with other regions. The US SEC has approved Bitcoin ETFs and Etheruem ETFs while Ripple XRP was classified as non-security with little clarity on the regulation.
SAB 121 has caused problems as the SEC directed financial institutions to include customers’ crypto assets as liabilities. This rule could raise the amount of capital banks need to hold, making crypto custody less feasible, even though Congress is considering revisions to SAB 121.
Growing Demand for Custody
More institutions are looking for digital asset custody services, and Ripple wants more banks to join the bandwagon. At the moment, family offices are the key drivers of the crypto market, but pension funds are likely to join soon. For the future rises in demand, the network work managers are to improve the precautionary measures such as cybersecurity and the amount of assets needed. As big firms come into the market, then the custodians will require the hot and cold options.
Technology partners are important to bridge the gap between traditional finance and the digital asset economy, providing safe haven and infrastructure solutions. This has made the growth of Ripple and has forced more banks to engage technology firms so that they can be able to offer and deal with the digital currencies safely.
These partnerships enable the banks to tap into the digital economy, create new sources of income and reposition them effectively. Ripple’s growth across the Americas marks a new era for the region as more and more consumers turn to digital finance.
