E-Commerce Mercado Libre Invests in Two Crypto Companies

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

The amount of the investments were not revealed. This announcement shows Mercado Libre’s dedication to cryptocurrencies and blockchain technology, especially in Brazil.

Also, the e-commerce giant plans to offer important products and services to Latin American entrepreneurs.

Mercado Bitcoin is a leading cryptocurrency exchange in Brazil and one of the biggest in Latin America, with more than 3 million users, and Paxos is a blockchain infrastructure platform, which offers different services like its own stablecoin USDP.

Andre Chaves, Mercado Libre’s Senior Vice President of Strategy and Corporate Development, said the following on the press release:

“2TM and Paxos share this vision and our conviction to continue innovating to offer solutions which improve people’s lives, generate value and drive the development of our region. We want everyone to be able to access the digital assets market in a simple and transparent way, this is our goal”

Mercado Libre Believes in the Crypto Industry

Although Mercado Libre’s investments in these crypto firms look like they are new to crypto, this is not the first time that Mercado Libre has entered the crypto world.

Back in December 2021, the e-commerce partnered for the first time with Paxos, offering Brazilian users to buy, sell, and hold BTC, ETH, and USDP in Mercado Libre’s digital wallet Mercado Pago.

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

Brazil Is Growing as a Crypto Region

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

In November 2021, the Central Bank of Brazil (BCB) announced a pilot program in issuing its own Central Bank Digital Currency (CBDC) that will be launched this year.

Brasil, as Latin America’s leading economy, is definitively evolving its economy by offering for example crypto-related services for its citizens.