Where LATAM capital is moving now

Happy Saturday, everyone!
Brian McGleenon here, Global Head of News at BeInCrypto.

If you’re tracking emerging markets using only traditional public stock indices, you might be looking in the wrong place. The real institutional returns in Latin America (LATAM) may be in private credit, structured liquidity, distressed debt buyouts, and high-yield local fixed income.

Behind headline market volatility, smart allocators, family offices, and private credit funds are capitalizing on three major tailwinds:

• Generational Liquidity Events: Family conglomerates control ~75% of regional companies valued over $1 billion, creating massive demand for private, structured financing.

• High Real Yields: High local real interest rates and wide foreign exchange spread differentials offer outsized credit yields.

• Digital Dollar Infrastructure: A rapid, bottom-up migration toward stablecoins and low-cost payment rails is disintermediating traditional banking fees.

We break down these exact mechanics in our latest BeInCrypto report, The Exodus Economy. The data shows that capital isn’t simply fleeing LATAM; it is actively re-architecting how it moves, settles, and earns yield across the region.

Download the Full LATAM Report

Key Findings: Inside The Exodus Economy

• The Cash vs. Yield Test: Holding $10,000 in Argentine pesos over ten years (2016–2026) destroyed its value down to just $114. Meanwhile, Brazil’s local CDI deposits expanded purchasing power by 50% over the same decade.

• The $324B Digital Dollar Surge: Regional stablecoin volume jumped 89% year-over-year to $324 billion. In Brazil, stablecoins drive over 90% of crypto activity, used primarily for everyday corporate payments and treasury management rather than trading.

• Everyday Financial Flight: 72% of Ethereum stablecoin transfers in LATAM are under $1,000. People aren’t moving countries; they’re dollarizing their savings and working capital directly from their smartphones.

• Cheaper Cross-Border Transfers: Digital dollar rails have smashed cross-border transaction fees across $142 billion in regional remittance and B2B flows, slashing average costs from 5%–7% down to under 1%.

• $654 Billion Offshore: Brazilian entities hold $654 billion in declared overseas wealth. While offshore holding companies cluster in places like the Netherlands ($95B) and the Caymans ($73B), the US is the top destination for active bank deposits ($22.1B).

Podcast of the Week

In this week’s episode, I chatted with BVNK US General Manager Keith Vander Leest, to do a deep dive into the underlying data behind BeInCrypto’s LATAM Expert Council Exodus Economy Report.

Keith broke down how enterprise merchants and payment service providers (PSPs) are systematically replacing legacy SWIFT wire transfers with instant stablecoin rails.

He emphasised that while retail adoption gets most of the media headlines, the true volume surge is being driven by B2B supply chain settlement, cross-border invoicing, and international payroll.

Keith also shared valuable context on regulatory pragmatism across LATAM, explaining how clear local frameworks are compelling traditional financial institutions to either integrate on-chain rails directly through infrastructure partners like BVNK or risk losing corporate treasury clients entirely.

The LATAM Exodus Economy isn’t merely about wealth leaving a region; it’s about capital re-architecting how it moves, settles, and earns yield on a global scale. Whether your exposure is via private credit, special situations buyouts, or high-velocity payment rails, the structural arbitrage window is wide open.

Until next week,

Brian

Global Head of News, BeInCrypto