While the Spanish Monarchy and the West Indies Trade Company were colonizing North America, otherst groups of Spaniards began colonizing South America.
Rivera's Colony into Brazil
Long before Spanish Caribbean and Spanish Mexico had been established, the Portuguese Merchants took interest in the South half of the New World. Backed by the Merchant Class, Diego Rivera and his fellow conquistadors set up shop in the northeastern part of the continent. This new colony, town named Rivera after its founder, became a popular stop for ships following the Trade Winds into the New World. Expansion under the Portuguese Merchants proved fruitful at first. The Traders even considered setting up a South American Trade Company. However, seeing as the Amazon and its surroundings didn't have much to offer except jungle, funding cut short. The colony was starving. Desperate, Rivera pleaded to the Monarchy, who funded expansion reluctantly, as King Juan Carlos I was more interested in Mexico. However, seeing how expansion was easy (not the terrain though), the king realized how easily Spain could dominate the Continent. The colony, named Brazil, would be a huge asset in the future in terms of exports. Brazil was mostly made of Portuguese Settlers, as most Castilians went to North America at the time. Diego Rivera died in 1584, his colony surviving and becoming a major chunk of land.