One of the largest Latam-based startups, Mercadolibre, has announced significant resources in two crypto exchanges: Paxos and Mercado Bitcoin. With these purchases, the company moves closer to cryptocurrency, having already purchased bitcoin as a capital inflows for its treasury and offered the option of investing in cryptocurrency to its customers in numerous Latin American nations.
Mercadolibre Increases Its Investment in Cryptocurrency
Mercadolibre, one of Latin America’s largest e-commerce platforms with over 70 million customers, made key partnerships in two exchange systems. On January 20th, the Latam-based startup announced the acquisition of shares in 2TM, the parent organization of Mercado Bitcoin, one of Brazil’s top exchanges with three million clients.
Paxos, a stablecoin issuer and blockchain technology provider, was also engaged in by the corporation.
Although the amounts invested in each of these companies were not disclosed, the company stated that the investments were made to “stimulate the regional ecosystem, enabling it to offer progressively suitable products and services to Latin American entrepreneurs and users, who are at the heart of its strategy.”
Andre Chaves, Executive Vice President of Marketing and Product Management of Mercadolibre, commented on the investment:
2TM and Paxos embrace this goal and our determination to keep inventing in order to provide solutions that enhance people’s lives, produce wealth, and propel our region’s growth.
Our objective is for everybody to be allowed to penetrate the digital asset market in a straightforward and transparent manner.
The Crypto Firm
The company’s involvement with cryptocurrency is not new. Mecadolibre has always been a cryptocurrency-friendly firm. The investment in Paxos was preceded by a relationship created last year, which allowed some of the company’s clients to engage in cryptocurrencies directly in Mercadolibre’s platform via Mercadopago in Brazil. At the time, the business said that it will expand this service to additional nations later this year.
Furthermore, the corporation is one among the few in Latin America to have publicly acknowledged held cryptocurrency as component of its treasury.
When it released its financial results for the first quarter of 2021, it disclosed that it had purchased about $8 million in bitcoin (BTC). However, the company has yet to allow clients to pay for products and services using cryptocurrency, despite the fact that this is its primary business, and no deadline for the implementation of this capability has been provided.
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