Brazilian Crypto Exchange Gets $200M Funding From SoftBank

What Happened: Latin America’s largest crypto exchange Mercado Bitcoin has raised $200 million from SoftBank Group Corp’s SFTBY Latin America Fund.

Mercado’s parent company 2TM confirmed the investment in a Thursday press release, stating that the exchange’s Series B round represents the largest fundraise in Latin America to date.

The investment round is also SoftBank’s largest investment in a Latin American crypto company, making 2TM the biggest unicorn in the region with a value of $2.1 billion.

Why It Matters: Mercado Bitcoin will reportedly use the funds to scale up operations, expand its offerings and invest in infrastructure to “meet the soaring demand for crypto in the region.”

The exchange reported 700,000 new customers in this year alone, which led to a trading volume of $5 billion, surpassing its total volume for the first seven years of operation combined.

Its client base of 2.8 million now represents more than 70% of the individual investor base on the Brazil stock exchange.

“Cryptocurrencies have incredible potential in Latin America. We believe winning in Brazil is critical for 2TM Group and are excited to take part in this incredible journey,” said CEO of SoftBank Group International Marcelo Claure.

Read also: Singapore-Based Crypto Exchange Considers IPO As Trading Volume Surges 500% In 2021

“Millions of people around the world are realizing that digital assets and cryptocurrencies are both innovative technologies and efficient stores of value – Brazil is no exception to that trend," weighed in Roberto Dagnoni, executive chairman & CEO of 2TM Group.

2TM Group also plans to launch Bitrust, the first digital custodian in Latin America, subject to regulatory approval this year.