The company behind the XRP crypto asset, Ripple, together with Coinbase, has decided to invest in Bitso, the largest crypto exchange of Mexico, Bitso. During it's funding round, the Mexican company was able to get an undisclosed amount of money. Jump Capital, Pantera Capital, and the Digital Currency Group also participated in the investment round.
— Asheesh Birla (@ashgoblue) October 14, 2019
This company operates in Mexico since 2014 and it has around 750,000 clients in the country. Now, Bitso is set to expand to other countries in Latina America such as Brazil and Argentina.
Bitso’s CEO Daniel Vogel affirmed that the region is ready for disruption. According to The Block, 70% of the inhabitants of Latin America do not have bank accounts. This provides a good opening for the company to enter the region and serve the unbanked population.
Also, the economy of both countries are not doing well. Argentina is facing inflation and is putting restrictions on buying dollars, while Brazil is in a recession. This, some people claim, is making Bitcoin transactions in the countries spike, which is boosting crypto adoption in the region.
Ripple has been an investor of Bitso for a long time. When the company was created, Ripple invested in it, as it would be an important corridor for Mexico-U. S. payments. Now, the partnership is ready to be made even stronger.
Some months ago, Ripple launched its on-demand liquidity services for MoneyGram in Mexico and Bitso was a major partner of this enterprise. This means that Bitso represents a strategic partner for Ripple in the region.