Crypto today saw major shifts in adoption and regulation. Stablecoins now dominate purchases in Latin America. The UK regulator approved tokenized funds. And Twenty One Capital shares surged after a proposed merger.
Stablecoins Overtake Bitcoin in Latin America Crypto Purchases
Digital asset adoption in Latin America is changing fast. More users now buy stablecoins than Bitcoin. This shift reflects local economic pressures. Bitso’s 2025 report shows 40% of crypto purchases were dollar-linked stablecoins like USDT and USDC. Bitcoin accounted for only 18%. This is the first time stablecoins surpassed Bitcoin in the region.
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The data comes from Bitso’s nearly 10 million retail users. The trend is called “digital dollarization.” In countries with high inflation, stablecoins offer a way to store value. They are easier to access than traditional banking. Users can transact in US dollar equivalents without leaving their homes.
Bitcoin remains popular but for different reasons. Investors see it as a long-term store of value. Stablecoins are used for everyday transactions. This split shows how crypto is adapting to real-world needs. Latin America’s inflation-hit economies drive this change.
Also read: Circle stock surges 15% after strong earnings, $222M ARC token presale fuels stablecoin optimism
What This Means for the Region
Industry watchers note that stablecoins could reduce reliance on local currencies. They provide a hedge against devaluation. But they also carry risks. Tether and Circle must maintain their dollar pegs. Any failure could harm users.
The report also highlights growth in peer-to-peer trading. Users prefer direct transfers over exchanges. This suggests a maturing market. Crypto is no longer just for speculation. It is becoming a financial tool.
UK Regulator Clears Path for Tokenized Funds
The UK’s Financial Conduct Authority (FCA) approved new rules for tokenized funds. The policy statement, PS26/7, allows asset managers to use blockchain within existing fund rules. This is a big step for the UK’s digital assets roadmap.
The FCA wants to support innovation. Tokenization can make fund management more efficient. The changes let firms run investor records on distributed ledger technology (DLT). They can use the industry “Blueprint” model. Onchain records can serve as primary books for unit deals. No full off-chain duplicate is needed, as long as resiliency plans exist.
The FCA confirmed that authorized funds can maintain registers on public DLT networks. They can issue units across multiple blockchains. But investor rights and charges must remain consistent. This balances innovation with protection.
Implications for Asset Managers
This move could simplify tokenized funds. It avoids separate experimental structures. Asset managers can integrate blockchain into regulated operations. The UK wants to modernize market infrastructure without changing investor protections.
The FCA’s guidance is clear. Firms must meet standards for controls and resiliency. The Blueprint has already authorized the first tokenized UK UCITS. More funds could follow. This could signal a broader shift in Europe.
Twenty One Capital Rises on Proposed Merger
Shares in Twenty One Capital (XXI) jumped in after-hours trading. The company’s majority shareholder, Tether, proposed a three-way merger. The deal involves Bitcoin payments company Strike and mining firm Elektron Energy.
Tether said it intends to vote in favor of the mergers. Strike would bring a profitable financial services platform. It has global distribution and regulatory infrastructure. Elektron would add large-scale Bitcoin mining operations. The combined company would have strong execution capabilities.
XXI shares ended Wednesday down 1.7% at $7.83. But after hours, they hit $9.28 before settling at $8.35. That is a 6.6% gain. Investors reacted positively to the news.
What This Means for Investors
This merger could create a vertically integrated crypto company. Tether’s involvement adds financial backing. Strike’s platform offers payment services. Elektron provides mining power. The combination could be a new force in the industry.
But risks remain. Mergers can face regulatory hurdles. Integration is complex. Shareholders must approve the deal. The outcome is uncertain.
Conclusion
Crypto today shows a maturing market. Stablecoins are overtaking Bitcoin in Latin America. The UK is embracing tokenized funds. Mergers are reshaping the industry. These trends point to broader adoption. Crypto is moving from speculation to real-world use.
FAQs
Q1: Why are stablecoins more popular than Bitcoin in Latin America?
Stablecoins offer a stable store of value in US dollars. They protect against local inflation and currency devaluation. Bitcoin is more volatile and used for long-term investment.
Q2: What did the UK FCA approve for tokenized funds?
The FCA approved rules allowing asset managers to use blockchain for fund records. Firms can keep registers on DLT networks. This simplifies tokenized funds within existing regulations.
Q3: How did Twenty One Capital shares react to the merger news?
Shares rose 6.6% in after-hours trading. They hit $9.28 before settling at $8.35. The market reacted positively to Tether’s proposal.
Q4: What is the ‘Blueprint’ model for tokenized funds?
The Blueprint is an industry standard for using DLT in fund operations. It allows onchain records as primary books. The FCA has used it to authorize the first tokenized UK UCITS.
Q5: Could stablecoins face risks in Latin America?
Yes. Stablecoins rely on Tether and Circle maintaining their dollar pegs. Any failure could harm users. Regulatory changes could also affect their use.
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