Latin America’s Leading Exchange, Mercado Bitcoin, to Scale Operations After $38M Raise
Mercado Bitcoin, a leading crypto exchange in Latin America, is set to expand its operations into other jurisdictions following a successful investment round. The contributions were over $37 million (200 million BRL). According to the press release, this exchange, which has been operating almost exclusively in Brazil, will scale to other Latin American countries, including Argentina, Chile, and Mexico.
Started back in 2013 by the Chamati brothers, Mercado Bitcoin is one of the veterans and reputable crypto exchanges in Brazil. The firm has been growing exponentially in recent years; currently, over 2 million users leverage the exchange for crypto operations. It touts close to $3.7 billion in cumulative transactional volume.
Mercado Bitcoin's latest investment round was led by Latin America industry heavyweights Parallax Ventures and GP Investimentos. Other players who contributed include Gear Ventures, Banco Plural, HS Investimentos FIP, and Evora Fund. With these stakeholders' financial support, the exchange is now looking to capitalize on the larger Latin American crypto market.
Generally, Brazil has been crypto-friendly jurisdiction compared to other countries yet embraces a legal scope for crypto activity. This Latin American giant has attracted notable crypto ventures, with Mercado Bitcoin leading the pack. It now seems that they are ready to bite more in terms of market share; the firm’s CEO Reinaldo Rabelo highlighted the potential in this move,
“We want to develop the crypto ecosystem in Brazil and create a market as developed as that of the United States. To do this, we want to be one of the five largest digital exchanges in the world. Today, we are already the largest exchange in Latin America, operating almost exclusively in Brazil. Now, we're going to look at the other markets, like Chile, Mexico, and Argentina, which have a regulatory culture closer to ours.”
Mercado also said that it would invest in two strategic fronts to consolidate its leadership; the investments will be allocated to Bitrust and Meubank. The former is a qualified crypto custodian to provide a gateway for institutional clients. At the same time, the latter is a digital wallet provider in the process of being approved by Brazil’s Central Bank.