DeFi Technologies Expands into Latin America with Brazilian Market Entry

DeFi Technologies CA24464X1069

In a strategic move to capture institutional capital from one of the world's most significant cryptocurrency markets, DeFi Technologies has launched a dual-product offering on Brazil's B3 exchange. The initiative, which commenced trading today, represents a pivotal expansion into Latin America for the company and its subsidiary, Valour.

The company has introduced Brazilian Depositary Receipts (BDRs) for its stock, enabling local investors to gain exposure to DeFi Technologies' equity directly in Brazilian Real (BRL). These receipts trade under the ticker symbol DEFT31. This structure provides a simplified, locally-traded avenue for qualified and institutional Brazilian investors, eliminating the complexities and additional costs associated with accessing foreign exchanges.

Simultaneously, Valour has listed a new exchange-traded product (ETP) tracking Solana on the same platform. The Valour Solana ETP (VSOL) expands Valour's existing suite of digital asset ETPs in the region, offering regulated access to the Solana network. This combined launch of an equity derivative and a crypto product is designed to create a consolidated entry point for Brazilian capital seeking exposure to the digital asset ecosystem.

CEO Johan Wattenström characterized the launch as a "simple, locally tradable opportunity" for Brazilian institutions to participate in the company's growth narrative. The move strategically positions DeFi Technologies in a market where digital asset adoption is already notably high by global standards.

Broadening the Revenue Base Amid Market Volatility

This geographic expansion occurs as the company seeks operational growth against a backdrop of ongoing market volatility. Valour has reported consecutive record increases in Assets Under Management (AUM) in recent months, driven by net inflows into its existing digital investment products.

A key objective of entering the Brazilian market is to reduce reliance on core European and Canadian markets and diversify the revenue base. The company's stock, however, continues to navigate fluctuating earnings expectations and uncertainties surrounding past quarterly forecasts. Market observers view the success of this Brazilian launch as a crucial test for DeFi Technologies' overarching strategy of bridging traditional capital markets with decentralized finance protocols.

The B3 exchange is recognized as one of the largest markets for crypto-oriented equities outside North America. By establishing a local presence, DeFi Technologies can now target institutional funds that, for regulatory reasons, lack direct access to overseas bourses.

Long-Term Vision: A Stepping Stone to 100 ETPs

For Valour, today's launch is a milestone in a longer-term plan to significantly broaden its product universe. The subsidiary reaffirmed its ambitious target to expand its global offering to 100 ETPs by the end of 2025.

In the coming weeks, trading volume for the DEFT31 BDRs will be closely monitored to gauge the receptiveness of Latin American institutional investors. Technical analysts are also watching to see if access to this new capital pool can help stabilize the share price and curtail its recent consolidation phase. The company plans to provide concrete figures on the demand for its Brazilian products in its next monthly operational update.