By On October 14th, 2019, San Francisco-based fintech firm Ripple revealed that it is leading the Series A2 investment round in Mexico’s largest digital asset exchange Bitso.
Bitso landed an undisclosed amount of capital from investors, headed by Ripple. Other significant funders include Coinbase, Jum Capital, and Pantera Capital.
According to the report, the investment round will focus on expansion efforts to Argentina and Brazil.
Both countries represent not only huge markets but ones with excellent retention and usage of cryptocurrencies. Other unnamed Latin American countries are also reportedly on the Ripple’s radar.
Asheesh Birla, senior vice president of product at Ripple, will reportedly be joining Bitso’s board of directors so as to support the crypto exchange as it expands into new areas. He stated:
“Technologies like blockchain and digital assets could transform the remittance landscape by making it easier, quicker, and cheaper to send money across borders.”
He added that Ripple is focused on building new rails and working with various infrastructure partners to make this future a reality.
Bitso now becomes the first DLT licensed exchange that is regulated by the Gibraltar Financial Services Commission (GFSC). This will likely help the company develop into the most innovative and consumer-friendly financial services provider in Latin America.
Ripple Growing Its Solutions
Mr Birla said that in 2018, crypto remittances into Latin America and the Caribbean increased by around 10%, with Mexico receiving the largest amount of these payments.
This is crucial for the economy, considering that many families in the region receive financial support from other family members working abroad.
By using blockchain technology and digital currencies, it is possible to make quicker and cheaper payments.
Bitso is playing a vibrant role in RippleNet’s US – Mexico corridor by providing the much-needed liquidity for payments.
Additionally, Ripple recently launched on-demand liquidity (ODL) capabilities with MoneyGram into Mexico, and Bitso played a key role as a leading exchange partner.
As Ripple continues to expand in Latin America, its partnership with Bitso will continue to be very important. That’s mainly because the exchange has a user base of 750,000 people that keeps growing every single month.
Crypto in Latin America
As Contxto earlier reported, Latin America is one of the fastest-growing regions for crypto users.
In June, Ripple launched operations in Brazil to expand its Latin American footprint and offer cheaper cross-border payments.
Now, Bitso’s strategic partnership comes at great timing for Ripple, as it creates the necessary infrastructure for massive crypto adoption in the region.
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