Mercado Bitcoin, Brazil’s largest cryptocurrency exchange, has raised $200 million from SoftBank Latin America Fund. Today, 2TM Group, Mercado’s parent company, announced the announcement. SoftBank’s largest capital injection into a Latin American crypto company is valued at $2.1 billion.
The deal, which follows closely on the heels of SoftBank’s investment into the $250,000,000 round raised by Mexican cryptocurrency exchange Bitso last May, shows a growing interest to bring bitcoin and other cryptos to Latin America.
Roberto Dagnoni (executive chairman, CEO, 2TM Group) stated that the series B round would allow us to invest in our infrastructure. This will enable us to meet the growing demand for blockchain-based financial markets. “We want to become the primary solution provider for corporate actors.”
The exchange, which is based in Sao Paulo, aims to increase its number of listed assets (currently lists approximately 50 tokens), and to grow its 500-member team up to 700 by the end of the year. Additional plans include regional expansion, with a focus on Mexico, Argentina and Chile, and growth acceleration across 2TM Group’s portfolio which also includes digital wallet provider MeuBank, and digital custodian Bitrust (both subject to regulatory approval).
Mercado Bitcoin was founded by Gustavo and Mauricio Chmati in 2013. It has grown to be the largest cryptocurrency exchange in the nation. It secured its first financing round in January. This was co-led jointly by G2D/GP Investments, Parallax Ventures, and included participation from a variety of investors.
Mercado Bitcoin, like many other counterparts, has experienced significant growth in the past year. Its client base reached 2.8 million in 2021 – more than 70% of all individual investors on Brazil’s stock exchange B3. Between January and May, approximately 700,000. clients registered. The exchange’s trade volume grew to $5 billion in the same time frame, more than the sum for the first seven years. Dagnoni says, “Every month of this year, we trade the entire volume for 2020.”
Mercado Bitcoin, a leading cryptocurrency exchange in Brazil, is a leader in the region. They’re tapping into a large local and regional market that is measured by potential uses for crypto,” Paulo Passoni (managing partner at SoftBank’s SBLA Advisers Corp.), said Forbes via email. SoftBank invests in entrepreneurs who challenge the status quo using tech-focused and tech-enabled business models that disrupt an industry – Mercado Bitcoin does exactly that.
READ ALSO:Manhattan DA releases top Trump Organization executive ahead of anticipated criminal indictment
Despite the explosive growth of the crypto market in Brazil, Brazilian lawmakers are still behind the times when it comes to regulations. The 2018 investigation by the Brazilian antitrust watchdog the Administrative Council for Economic Defense was launched on the largest banks in Brazil for allegedly abusing power by closing crypto brokerage accounts. As of last year, the probe was still ongoing. The bill was proposed by Senator Soraya Thronicke in April 2020. However, no action has been taken. Dagnoni states that the country’s regulatory environment favors them and that the company is working closely with regulators to “build a consistent framework” for alternative digital investments in Brazil. This is in keeping with the company’s vision of a convergence between traditional and blockchain-based financial markets.