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DeFi Technologies Breaks Into Brazil: BDRs and Crypto‑ETPs on B3
DeFi Technologies is turning its global expansion into a reality by launching Brazilian Depositary Receipts (BDRs) and a suite of crypto‑Exchange Traded Products (ETPs) on Brazil’s premier exchange, B3 (Brasil, Bolsa, Balcão). The move opens a direct gateway for institutional and qualified investors in Latin America to tap into the company’s equity and the region’s booming digital‑asset market.
Why BDRs Matter for International Companies
BDRs let foreign firms list their shares on a local exchange without the need for a full‑blown IPO. Investors trade the receipts in their native currency (BRL), benefitting from familiar settlement cycles and regulatory frameworks. For DeFi Technologies, the BDR ticker DEFT31 translates its Nasdaq‑listed performance into a product that can be bought through Brazilian broker‑dealers.
Valour’s Crypto‑ETPs: Bridging Traditional Finance and Digital Assets
Through its subsidiary Valour, DeFi Technologies secured approval for four crypto‑ETPs that will also debut on B3:
- Valour Bitcoin (BTCV)
- Valour Ethereum (ETHV)
- Valour XRP (XRPV)
- Valour SUI (VSUI)
These products give Brazilian investors exposure to leading cryptocurrencies within a regulated, exchange‑traded framework—eliminating the need for self‑custody wallets or offshore exchanges.
Strategic Implications: Diversifying Revenue Streams
DeFi Technologies reported $22.5 million in Q3 revenue, down from $28.1 million YoY, and an operating profit of $9 million. By entering Brazil, the firm aims to:
- Tap into a market that grew 38 % in crypto‑asset adoption over the past 12 months (Chainalysis, 2024).
- Strengthen its equity base via BDR trading, attracting capital from Brazil’s “institutional‑first” investor community.
- Leverage cross‑selling opportunities between its stock and crypto‑ETPs, increasing client lifetime value.
Real‑World Precedents
European fintech firms such as Nordic crypto platform Bitso successfully listed BDRs on B3 in 2022, witnessing a 57 % surge in trading volume within six months. Similarly, South Korean exchange operator KORBIT leveraged BDRs to tap into Brazil’s high‑frequency traders.
Future Trends Shaping the Brazil‑DeFi Nexus
1. Growing Institutional Appetite for Crypto‑ETPs
Asset managers are launching “crypto‑linked” funds to satisfy fiduciary mandates for diversification. Expect a rise in “multi‑asset” ETPs that bundle Bitcoin, Ethereum, and emerging tokens like SUI under a single ticker.
2. Regulatory Evolution
Brazil’s Central Bank has introduced the Digital Payments and Assets Regulation (DPAR), providing clearer guidance for crypto‑ETPs. This will likely reduce compliance friction and encourage more foreign issuers.
3. Cross‑Border Liquidity Pools
With BDRs bridging US‑listed equities and Brazilian capital, liquidity providers can create arbitrage strategies across NASDAQ and B3, enhancing price efficiency for both markets.
Pro Tips for Investors Eyeing the Brazilian Crypto Frontier
FAQ: Quick Answers About DeFi Technologies’ Brazil Launch
- What is a Brazilian Depositary Receipt (BDR)?
- A BDR is a locally traded security that represents shares of a foreign company, allowing investors to buy and sell the foreign stock in Brazilian reais.
- Can foreign investors trade the DEFT31 BDR?
- Yes, any investor with access to B3—including foreign brokers that partner with Brazilian custodians—can trade DEFT31.
- Are the Valour crypto‑ETPs physically backed?
- Valour’s ETPs are fully collateralised with the underlying digital assets held in regulated custodial vaults, meeting B3’s “physical backing” requirement.
- What tax implications should Brazilian investors consider?
- Profits from BDRs and crypto‑ETPs are subject to Brazil’s capital gains tax, currently 15 % for gains up to BRL 5 million, with higher brackets above that threshold.
- How does this launch affect DeFi Technologies’ stock price?
- The added liquidity from BDR trading and increased brand exposure in a high‑growth market could provide a positive catalyst, but investors should monitor overall market sentiment and quarterly earnings.
What’s Next?
DeFi Technologies’ dual‑track strategy—equity via BDRs and assets via crypto‑ETPs—sets a blueprint for fintech firms seeking to capitalize on Latin America’s digital‑asset surge. As regulatory frameworks solidify and institutional demand accelerates, Brazil may become the launchpad for the next wave of cross‑border crypto finance.
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For more analysis on global crypto market trends, read our latest piece on “Crypto Market Outlook 2025”.
