The Tokyo-based multinational conglomerate holding company operates a Latin America fund that invests in startups focused on identification technology, e-commerce, education, fintech, and now cryptocurrency solutions. The Softbank Latin America Fund announced Thursday that it had invested $ 200 million in the crypto-asset exchange Mercado Bitcoin.
$ 200 million capital increase from Mercado Bitcoin: Softbank Funds One of the largest Series B funding rounds in LATM
Softbank Latin America Fund has invested in Mercado Bitcoin’s parent company 2TM Group. The announcement underscores that it is one of the largest Series B funding rounds in Latin America and Softbank’s largest crypto investment in the Latin American continent. The investment increases 2TM Group’s unicorn status to $ 2.1 billion and is the eighth most valuable fintech company in Latin America.
Mercado Bitcoin aims to use the funding to continue scaling operations and invest in more infrastructure. The company’s announcement highlights that Mercado Bitcoin has gained 2.8 million customers in the past 12 months. “Between January and May 2021, around 700,000 new customers signed up to use the services of Mercado Bitcoin,” the company said in a statement. In addition, the trading volume of Mercado Bitcoin also grew massively in 2021 and “exceeded the total volume of the first seven years combined”.
“Mercado Bitcoin has developed into one of the world’s leading providers in the field of cryptocurrencies. We were impressed with the 2TM Group’s understanding of the Brazilian ecosystem and their contribution to the evolving regulatory framework in Brazil, ”said Marcelo Claure, CEO of Softbank Group International and COO of Softbank Group. The Softbank manager added:
Cryptocurrencies have incredible potential in Latin America. We believe the win in Brazil is of vital importance for the 2TM Group and we look forward to joining this incredible journey.
Softbank Group and the conglomerate’s portfolio companies are interested in fintech and blockchain
Fintech companies and crypto solutions have caught mainstream attention in Latin America, and the first Bitcoin Exchange Traded Fund (ETF) in Latin America made its debut on the Brazilian stock exchange last week. The company’s Softbank Group and Latin America Fund have built portfolio companies based on these trends. The Softbank Latin America Fund also supports fintech companies such as Creditas, Cortex, Inter, Loggi, Konfio and Ualá.
The multinational conglomerate Softbank has been dealing with crypto and blockchain technology for some time. In October 2019, Softbank announced that it was working with Tbcasoft and IBM on a cross-carrier blockchain technology project. Softbank also worked with Tbcasoft when the companies formed a blockchain-based “Identification & Authentication” working group that same year.
One of the Tokyo-based company’s portfolio companies also uses crypto asset solutions. It wasn’t until mid-April 2021 that Softbank-backed global space provider Wework recently announced that it would accept cryptos and keep digital assets on its balance sheet.
Softbank’s funding of Mercado Bitcoin follows the company’s Series A round in January 2021, jointly led by Parallax Ventures and G2D / GP Investments. Mercado Bitcoin aims to use the funding to “accelerate growth across the 2TM group’s portfolio”. The 2TM Group’s portfolio also includes the crypto wallet provider Meubank and hopes to be able to launch a fund called “Bitrust” in the near future.
What do you think of Softbank funding the 2TM Group and its subsidiary Mercado Bitcoin with $ 200 million? Let us know what you think on this matter in the comments below.
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2TM Group, Blockchain, Brazil, Brazilian, Cortex, Creditas, crypto solutions, G2D / GP Investments, Inter, Konfio, Latin America, LATM, Loggi, Marcelo Claure, Mercado Bitcoin, Meubank, Parallax Ventures, Softbank, Softbank Bitcoin, Softbank Krypto, Softbank Group, Softbank Group International, Softbank Latin America Fund
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