TLDR Tech / Crypto
Why FX is Going Onchain
Onchain FX executes a 1,000 BRL swap at roughly 0.8% all-in with immediate 24/7 settlement, leaving approximately 29,331 ARS more in the user's pocket compared to Wise's quote with weekend settlement delays. The structural efficiency gain collapses the model from one operation per corridor (BRL/ARS, ARS/COP, and MXN/BRL each requiring separate accounts, prefunding, and relationships) to one ramp per currency, with the FX leg becoming a market rather than a company. The primary constraint today is pool depth: the BRL/ARS swap clears near mid-market at $200 but slips materially at $20k, as local-currency pools remain thin relative to USD pairs. Argentina's stablecoin share of crypto volume (~62%, above Brazil and the global average) and LatAm's fragmented payment flows (payroll, remittances, B2B, and treasury rebalancing) position the region as the primary demand signal for local-currency stablecoins with onchain liquidity between them, moving beyond the earlier wave of USD dollarization.
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