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E-Commerce Mercado Libre invests in two crypto companies

Posted on by darion

Argentinian company Mercado Libre (MELI) has announced two investments in the cryptocurrency industry, the purchase of shares of 2TM Group, the parent company of Mercado Bitcoin, and a “strategic partnership” with Paxos.

The investment amount was not disclosed. This announcement demonstrates Mercado Libre’s commitment to cryptocurrencies and blockchain technology, particularly in Brazil.

The e-commerce giant also plans to offer important products and services to Latin American entrepreneurs.

Mercado Bitcoin is the leading cryptocurrency exchange in Brazil and one of the largest in Latin America, with over 3 million users, and Paxos is a blockchain infrastructure platform that offers various services such as its own USDP stablecoin.

Andre Chaves, senior vice president of strategy and corporate development for Mercado Libre, said in a press release:

“2TM and Paxos share this vision and our belief in continuing to innovate to offer solutions that improve people’s lives, generate value and drive the development of our region. We want everyone to have access to the digital asset market in a simple and transparent way, this is our goal.”

Mercado Libre believes in the cryptocurrency industry

While Mercado Libre’s investments in these crypto companies look like they are new to cryptocurrencies, this is not the first time Mercado Libre has entered the cryptocurrency world.

In December 2021, the e-commerce partnered with Paxos for the first time, offering Brazilian users to buy, sell and store BTC, ETH and USDP on the Mercado Libre Mercado Pago digital wallet.

Prior to the partnership with Paxos, in May 2021, Mercado Libre announced the purchase of $7.8 million worth of Bitcoin as part of its treasury strategy.

Brazil is emerging as a crypto region

The Brazilian cryptocurrency ecosystem does not seem to be slowing down, just a week ago Eduardo Paes, the mayor of Rio de Janeiro commented that he wants to launch a city coin called “Crypto Rio” and invest 1% of the city treasury in Bitcoin.

In November 2021, the Central Bank of Brazil (BCB) announced a pilot program for issuing its own central bank digital currency (CBDC), which will be launched this year.

Brazil, as Latin America’s leading economy, is definitely evolving its economy, offering its citizens, for example, cryptocurrency services.

This article was originally published on FX Empire

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