FillyofDelphi
Banned
The fact the Spaniards explicitly prohibited new christians from settling the new world seems to make this scenario impossible inside the frame of post reconquista Spain.
The POD could involve the Spainish crown allowing such a settlement. Or perhaps instead of an Inqusition they establish some kind of penal colony in the hitherlands (Say, Patagonia or northern Mexico) to form a kind of human shield between valuable, populated territories and the more hostile Native American tribes. It'd be rather amusing to see the Great Salt Lake region being peopled by literal Moor-Man settlers.
Then they fight the oppression, by being nice to everyone. (Especially the local women