Mercado Bitcoin, the largest Bitcoin exchange in Brazil, announced on Thursday the closing of a funding round of BRL 200 million (about $ 38 million) and revealed its international expansion plans.
The financing round was led by local private equity firm GP Investimentos and early stage venture capital Parallax Ventures, along with participation from various other parties, primarily from the local market.
Founded in 2013, the exchange became the largest Bitcoin exchange in Brazil. It doubled its customer base in the past two years, reaching 2.2 million, according to the exchange. In addition, the volume of operations continued to be impressive, with R $ 6.4 billion in all of 2020 and exceeding half of that this month alone.
“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, ”said Reinaldo Rabelo, CEO of Mercado Bitcoin.
The exchange is now aiming to surpass 3 million users by the end of 2021.
Expansion to Latin American markets
With the growing demand for digital currencies, Mercado Bitcoin is now planning further expansion in Latin American countries with locally formed entities. It already has some international presence, but those that operate remain under the Brazilian company.
Aside from expansion plans, the exchange will use the fresh revenue to expand its products. In addition, it will invest in its Bitrust, custodial platform and digital wallet, Meubank, which is seeking approval from the central bank.
“We are already the largest stock exchange in Latin America, operating almost exclusively in Brazil. Now we are going to see the other markets, such as Chile, Mexico and Argentina, which have a regulatory culture closer to ours ”.
"Our long-term purpose is to participate in the construction of a new infrastructure for the financial market (IMF), based on blockchain, smart contracts and crypto assets," Rabelo added.