2TM, the parent company of the Brazilian cryptocurrency exchange Mercado Bitcoin, has received $ 50.3 million in new financing to expand its operations in Latin America, a strong signal that venture capital sees growth potential in the region.
The company said Tuesday that the Series B fundraiser included 10T funds and US-based Tribal Capital, as well as Brazilian companies Traders Club, Pipo Capital and Endeavor.
The financing round cemented 2TM’s position as a crypto unicorn after the company raised $ 200 million from SoftBank in July. At the time, Mercado Bitcoin was the second Latin American cryptocurrency exchange to hit the $ 1 billion valuation mark.
The company said that Mercado Bitcoin currently has more than 3.2 million customers, which is about 80% of active individual accounts on the Brazilian stock exchange. According to Roberto Danione, CEO of 2TM, revenue in the first ten months of 2021 was $ 7 billion.
Mercado’s growing user base reflects the growing interest of private customers to invest in digital assets at a time when economies across Latin America are suffering from hyperinflation and other economic problems. In Brazil, where Mercado Bitcoin is based, regulators have approved legislation that will support the continued growth of crypto investments. The leading investment bank BTG Pactual has also launched a new platform to facilitate users’ access to cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
Asked about other factors that drive the use of cryptocurrency in the region, a spokesman for Mercado Bitcoin told Cointelegraph that the motives differ from country to country. “For example, in Brazil, the main driving force is the category of alternative investments,” the spokesman said. “In Mexico, money transfers are a big part of the driving force for the total. In Argentina, stack coins are used much more as a hedge against currency fluctuations. ”
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The cryptocurrency industry is now home to dozens of high-profile unicorns and at least three multi-billion dollar investment funds. As Cointelegraph reported on Monday, former Citi banker Matt Zhang has set up a $ 1.5 billion project fund to support promising blockchain infrastructure projects, virtual worlds and programmable funds.
