VC Pulse: Where Are the Biggest Bets in Emerging Market Crypto?
Venture capital (VC) investment in crypto has entered a dynamic new phase in 2025.
The frothy days of 2021-22 may be past, but the appetite for innovation is shifting rather than shrinking, rapidly moving from high-income economies to the entrepreneurial cauldrons of emerging markets.
In Latin America, Africa, Southeast Asia, and beyond, VCs are betting that blockchain will leapfrog old financial systems and spark an inclusive digital revolution.
Where—and why—are the biggest bets being made?
The Macroeconomic Case: Why Emerging Markets?
Emerging markets offer a confluence of factors perfect for blockchain disruption:
- High Inflation and Currency Instability: Millions face volatile local currencies and unreliable financial infrastructure. Crypto and stablecoins offer stability, cheaper remittances, and protective stores of value.
- Underbanked Populations: From Africa to Southeast Asia, large demographics lack access to banking but have smartphones—a fertile ground for digital wallets and DeFi.
- Mobile-first Adoption: Young, tech-savvy populations are happy to skip legacy systems and build on-chain first.
- Regulatory Experimentation: As rules evolve, some governments are cautiously supportive, piloting sandboxes or local frameworks.
VC Giant Moves: Who’s Leading the Charge?
Top crypto-focused VCs—like Pantera Capital, a16z, Coinbase Ventures, Binance Labs (now YZi Labs), and Polychain Capital—are all turning their attention to emerging markets, building on successes in the US and Europe.
- Digital Currency Group (DCG): Over 100 projects funded in 30+ countries, active in Africa and Latin America.
- Sequoia Capital: New regional funds for India and Southeast Asia—early-stage crypto and Web3 are prime targets.
- Core Venture Network: Region-specific $15M+ funds dedicated to Africa, Latin America, Southeast Asia, supporting early-stage builders on Bitcoin-aligned chains.
Where the Money Is Flowing: Sectors in Focus
Leading VCs are drawn to real-world utility and scalability, with funding bets shifting as the market matures:
1. Stablecoins and Payments
- Used by individuals and businesses in inflation-prone countries for cross-border transactions, salaries, and savings.
- Projects like MetalGear in Africa and Latin America are overhauling remittances using blockchain rails.
2. Real-World Asset (RWA) Tokenisation
- Tokenising local assets—from property in Brazil to agricultural commodities in Africa—unlocks new liquidity and global participation.
- The RWA sector is projected to reach $30 trillion by 2030, with much of that adoption likely in emerging economies.
3. DeFi and Micro-lending
- DeFi startups are targeting microfinance in India, peer-to-peer lending in Africa, and yield strategies in Latin America, aiming to fill gaps left by inadequate banking.
- VC funds see opportunities to scale these experimental pilots region-wide.
4. Infrastructure Layers
- Blockchain infrastructure and Layer-1s aimed at scalability, mobile-first access, and lower fees are seeing significant interest (TON, Drift Protocol, Helium).
- Decentralised infrastructure (DePIN) has attracted hundreds of millions, especially in connectivity-starved regions.
5. AI and Web3 Convergence
- VCs are keen on startups at the AI-crypto intersection, from decentralised data marketplaces to resource-sharing protocols.
Regional Hotspots: VC Activity in Action
Africa
Africa stands out as a frontrunner for crypto adoption, driven by the need for efficient remittances, protection against FX volatility, and a mobile-first user base.
Landmark projects such as MetalGear, Bitnob, Btrust, and Core Chain have attracted both local and international VC attention.
User growth continues to surge, reinforced by a youthful demographic and a demand for practical financial tools.
Latin America
Latin America’s crypto growth is propelled by persistent inflation, rapid currency devaluation, and a strong demand for cross-border solutions.
Noteworthy VC-backed cases here include Bitso, Mercado Bitcoin, and Nubank Crypto.
Countries such as Argentina have become key testing grounds, especially as inflation forces residents to look for alternatives to their native currencies—a trend VCs are closely following.
Newsletter
The corridor, every morning.
Funding rounds and cross-border capital moves, one email, five minutes.
Southeast Asia
In Southeast Asia, digital commerce and a leapfrog into fintech have underpinned robust crypto adoption. Startups like Cake DeFi and Firo, along with a variety of DeFi protocols, have gained VC funding.
User numbers are rapidly increasing in countries such as the Philippines and Indonesia, where populations are open to embracing new financial technologies.
Middle East and India
The Middle East and India are benefiting from progressive regulatory sandboxes and a large, digitally native youth market.
Notable investments have flowed into the likes of CoinDCX and Polygon, with Sequoia Capital and other large funds establishing regional positions.
High user retention and rapid onboarding of new digital asset users highlight the region’s long-term promise.
VC capital now comes from a mix of global giants and expanding regional funds, with each continent cultivating its roster of innovative platforms and founders.
While the nuances differ, the common thread is a surge of local talent and use cases that address real-world economic pain points.
Caution Lights: Not All Bets Are Even
Despite huge potential, there are challenges:
- Access Gaps: Most crypto VC capital still comes from or is routed through the US, UK, or Singapore, making true local funding scarce.
- Regulatory Hurdles: Inconsistent or hostile regulation can chill innovation or force startups to operate in legal grey areas.
- Talent Drain: Developers may move to better-resourced regions, hollowing out local capacity.
However, alternative VC models—community DAOs, grant programs (such as Btrust’s initiatives in Africa), and mission-aligned regional funds—are starting to address these gaps.
The Outlook: VCs Redefining Crypto’s Global Narrative
2025 is seeing VC bets pivot away from me-too meme coins and toward real-world impact: cross-border payments, banking the underbanked, collateralising real-world assets, and building the rails for on-chain economies.
Emerging markets—once an afterthought for global investors—are now the crucible where blockchain’s grandest promises are being tested.
If the past belonged to Silicon Valley, the next wave of crypto adoption will be built in Lagos, Buenos Aires, Mumbai, and Manila.
Edited by Annette George
More in Regional Watch
