Argentine bitcoin giant Ripio launches OTC trading desk

Argentine bitcoin and digital payments giant Ripio has launched an over-the-counter trading desk for institutional investors.

The service - Ripio OTC - is independent from its bitcoin wallet offering, which allows retail customers to buy and sell bitcoins and make online payments.

Under current regulations retail customers can transfer a maximum of 500,000 pesos a year (US$18,129) to their Ripio wallets.

OTC trades must be above 500,000 pesos and maximum amounts are determined by documentation provided by the investor.

Ripio is the biggest cryptocurrency player of its kind in Argentina and also offers a retail credit service.

"The local institutional market willing to invest in cryptocurrencies required a product with professional tools that, today, are not offered in Argentina," Ripio CEO Sebastián Serrano said in a statement. "Ripio OTC was conceived with this in mind; provide professionalism, liquidity and prices tailored to the sector."

The interest, the company said, of the big players of Wall Street in cryptocurrencies is growing exponentially.

In 2017, some of the main OTC platforms in the world handled billions of dollars a month in trades. "While in Argentina volumes are below this level, numbers are growing daily as the country emerges as one of the main fintechs hubs of Latin America," Ripio said.

OTC trading is done directly between two parties, off of exchanges.

Ripio has more than 200,000 users in Argentina and Brazil and, starting this year, is expanding into Mexico, Chile and Colombia, among other countries in the region.

"This year we're focusing efforts on a regional expansion, including local teams in each country," Ripio told BNamericas. "We're seeking to strategically position the Ripio brand in each of these three countries, to offer local solutions that facilitate access to the world of cryptocurrencies. The Mexico launch will happen next month, Chile and Colombia towards the end of the year."

Fintech sector players such as Ripio have Argentina's large unbanked population in their crosshairs.

In 2014, regulatory authorities ordered all Argentine financial services companies to begin reporting on all transactions involving virtual currencies.

In October last year the central bank said it had no plans to regulate fintechs that offer money-lending services to the public.