Latin America’s Mercado Bitcoin raises $200 mn USD from SoftBank

By Pavithra R

2TM Group, the parent company of Mercado Bitcoin, the leading cryptocurrency exchange in Latin America, has announced that Mercado Bitcoin has secured $200 mn USD from the SoftBank Latin America Fund. The investment values 2TM Group at $2.1 bn USD, making it the eighth-most valuable unicorn in Latin America.

The fundraise represents the largest Series B round in Latin America’s history and SoftBank’s largest investment in a LATAM crypto company. Mercado Bitcoin will use the finance to increase its scale, expand its offerings and invest in infrastructure to meet the soaring crypto demand in the region.

“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. 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. I am thrilled to have the SoftBank Latin America Fund support to help us to realize our vision, thanks to the unparalleled combination of their financial expertise, in-depth industry experience, and extensive regional footprint,” said Roberto Dagnoni, Executive Chairman & CEO of 2TM Group.

Mercado Bitcoin has seen significant growth over the past year, with its client base reaching 2.8 mn in 2021. Between January and May 2021, approximately 700,000 new customers signed up to use its services. During the first 5 months of the year, the firm also saw its trade volume increase to $5 bn USD, surpassing the total for its first seven years combined.

“Mercado Bitcoin and its sister companies have demonstrated both innovation and leadership in the space. As we’ve developed a scalable market infrastructure, we have become the most trusted crypto brand in Brazil. This unique positioning has allowed us to capitalize on the surging interest in cryptocurrencies in both Brazil and Latin America more broadly, resulting in the significant expansion of our market share in the past year and paving the way for continued growth,” said Gustavo Chamati, Mercado Bitcoin’s Co-Founder and Board Member.

The new funding round will enable Mercado Bitcoin to grow its team to 700 by the end of 2021, as well as accelerate growth across 2TM Group’s portfolio, which will include digital wallet provider MeuBank, subject to regulatory approvals. In 2021, 2TM Group plans to launch Bitrust, the first digital custodian in Latin America, subject to regulatory approval. 2TM Group is also closely working with regulators to build a consistent framework for alternative digital investments in Brazil in line with its vision of a convergence of the traditional and blockchain-based financial markets.

“Thanks to Roberto and Gustavo’s vision, Mercado Bitcoin has become a global leader in the cryptocurrency space. We’ve been impressed by 2TM Group’s understanding of the Brazilian ecosystem, as well as their contribution to the evolving regulatory framework in Brazil, all of which have positioned it at the forefront of the Latin American blockchain revolution and as a defining player in the cryptocurrency explosion in Brazil. 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  Marcelo Claure, CEO of SoftBank Group International and COO of SoftBank Group.