E-Commerce Giant Mercado Libre Invests in Crypto Firms Paxos, 2TM

The company acquired shares of the holding company for Mercado Bitcoin crypto exchange, and made a “strategic investment” in Paxos.

AccessTimeIconJan 21, 2022 at 6:04 a.m. UTC
Updated Jan 21, 2022 at 3:48 p.m. UTC

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

Mercado Libre, Latin America’s largest e-commerce company by market value, has invested in 2TM, the holding company for Brazil's largest crypto exchange Mercado Bitcoin, and blockchain infrastructure company Paxos.

  • The e-commerce company bought shares of 2TM and made "a strategic investment" in Paxos, the company said in a statement on Thursday, without disclosing the investment amount.
  • The investments reinforce Mercado Libre’s “commitment to the development and use of crypto assets and blockchain technology in the region,” the company said.
  • Mercado Libre's relationship with Paxos is not new. In December 2021, the e-commerce giant integrated Paxos’ blockchain infrastructure to allow users of its digital wallet, Mercado Pago, to buy and sell bitcoin, ether and the stablecoin Pax dollar (USDP) in Brazil, with a minimum amount required of 1 Brazilian real.
  • “As a leading technology company, we are actively evaluating the various innovations and opportunities around this market as it evolves, aiming to be a core participant in this disruption. Digital assets and blockchain technology represent a unique, global and collective phenomenon that breaks barriers and creates a level, open playing field for all users to achieve economic empowerment, which is very aligned with our mission as a company,” Andre Chaves, senior vice president at Mercado Libre, said in a statement.
  • In May 2021, the company, which trades on Nasdaq as MELI, disclosed a $7.8 million bitcoin purchase that was part of its treasury strategy. Last month, its Argentine real estate platform launched a special section for the sale and purchase of properties with bitcoin.
  • Mercado Bitcoin, for its part, ended 2021 with 3.2 million users, 1.1 million of whom joined last year, the company told CoinDesk in an email. In that period, its trading volume reached $7.1 billion, it added.
  • Mercado Bitcoin raised $250 million in 2021 and reached a valuation of $2.2 billion. With a presence in Brazil, it plans to expand into Argentina, Chile, Colombia and Mexico, either organically or through acquisitions.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

CoinDesk - Unknown

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.