Biggest crypto exchange in Latin America raises $200m
06:58, 2 July 2021
Mercado Bitcoin, the largest cryptocurrency exchange in Latin America, has raised $200m from the SoftBank Latin America Fund.
The company said this is the largest series B round in Latin America’s history and SoftBank’s largest investment in a Latin American crypto company.
Mercado Bitcoin will use the funds to increase its scale, expand its offerings and invest in infrastructure to meet the soaring demand for crypto in the region.
“Millions of people around the world are realising that digital assets and cryptocurrencies are both innovative technologies and efficient stores of value – Brazil is no exception to that trend,” said Roberto Dagnoni, executive chairman and CEO of 2TM Group, the parent company of Mercado Bitcoin.
“This series B round will afford us to continue investing in our infrastructure, enabling us to scale up and meet the soaring demand for the blockchain-based financial market.”
2.8 million Brazilians invest in crypto
Mercado Bitcoin has seen significant growth over the past year, with its client base reaching 2.8 million in 2021. This represents more than 70% of the entire individual investors base on Brazil’s stock exchange, according to the company.
Between January and May 2021, approximately 700,000 new customers signed up to use Mercado Bitcoin’s services as the price of bitcoin doubled to an all-time high and the prices of most leading cryptocurrencies surged.
In the first five months of the year, Mercado Bitcoin also saw its trade volume increase to $5bn, surpassing the total for its first seven years combined.
The new funding round will enable Mercado Bitcoin to increase its team to 700 by the end of 2021 and accelerate growth across 2TM Group’s portfolio, which will also include digital wallet provider MeuBank, subject to regulatory approvals.
In 2021, 2TM Group will also launch Bitrust, the first digital custodian in Latin America, subject to regulatory approval.
The series B investment values 2TM Group at $2.1bn, making it the eighth-most valuable Latin American unicorn (a start-up with a valuation in excess of $1bn).
Read more: UK regulator bars crypto platform Binance Markets
Related topics