NEW YORK, July 1 (Reuters) – Japan’s SoftBank Group Corp (9984.T) has invested $200 million in Mercado Bitcoin, one of many largest cryptocurrency exchanges in Latin America, stated Roberto Dagnoni, govt chairman and chief govt officer of 2TM Group, the buying and selling platform’s mum or dad firm.
The funding, raised in a Sequence B funding spherical, was made by means of SoftBank Latin America Fund and represents the Japanese multinational firm’s largest funding in a Latin American crypto firm. Because of the funding, 2TM stated its valuation reached $2.1 billion.
The SoftBank capital elevate comes at a time when investor sentiment on cryptocurrencies has soured amid regulatory crackdowns in China, Britain and Japan. That has led to outflows from crypto funding merchandise and funds the previous few weeks. read more
Dagnoni, nonetheless, was unfazed by the present stoop in cryptocurrencies.
“We’re sturdy believers within the fundamentals of crypto,” Dagnoni advised Reuters in a cellphone interview.
Mercado Bitcoin will use the funds to scale its operations, increase choices, and put money into infrastructure to satisfy rising demand for crypto within the area, 2TM stated in an announcement.
“The platform is kind of built-in. So custody is essential in releasing the ability of the institutional market,” Dagnoni stated within the interview.
“We’re additionally regional expansions in Latam and expansions by way of M&A (mergers and acquisitions) as effectively,” he added.
Mercado Bitcoin, which launched in 2013, has grown considerably over the previous yr, with its consumer base reaching 2.8 million in 2021, greater than 70% of all the particular person investor base in Brazil’s inventory change, 2TM stated.
Between January and Might 2021, roughly 700,000 new prospects signed up to make use of Mercado Bitcoin’s companies, the corporate stated. Through the first 5 months of the yr, commerce quantity on the crypto change additionally elevated to $5 billion, surpassing the whole for its first seven years mixed.
Reporting by Gertrude Chavez-Dreyfuss in New York
Enhancing by Matthew Lewis
Our Requirements: The Thomson Reuters Trust Principles.