Tether, the company behind the world’s largest stablecoin USDT, has invested $20 million in Mercado Bitcoin, one of Brazil’s oldest and largest cryptocurrency exchanges, according to an announcement on Thursday.
The investment will support Mercado Bitcoin’s expansion across Latin America, a region where cryptocurrency adoption has grown rapidly despite ongoing regulatory uncertainty.
Strategic Partnership
Mercado Bitcoin, founded in 2013, operates in Brazil and Portugal and serves more than 4.5 million users. The company said the funding will enable it to scale operations, develop new products, and strengthen its position in Latin American markets.
Tether’s investment comes through its venture capital arm, Tether Investments, which has been actively deploying capital into emerging market infrastructure. The company did not disclose the structure of the deal or whether it includes equity or convertible debt.
“This partnership represents a significant step in our mission to democratise access to digital assets across Latin America,” Mercado Bitcoin chief executive officer Reinaldo Rabelo said in a statement.
The investment marks Tether’s latest move into Latin America, a region where stablecoins have become a critical tool for remittances, savings, and cross-border payments amid currency volatility and inflation.
Tether has made several strategic investments in recent months, targeting infrastructure that supports stablecoin adoption in emerging markets. The company has backed payment platforms, blockchain projects, and exchanges in regions where access to stable currencies and efficient financial services remains limited.
USDT is widely used across Latin America, particularly in Argentina, Venezuela, and Brazil, where users turn to stablecoins to protect against local currency devaluation.
Latin America’s Crypto Market
Latin America has emerged as one of the fastest-growing regions for cryptocurrency adoption. A 2023 report by blockchain analytics firm Chainalysis ranked the region third globally for crypto adoption, driven by remittances, peer-to-peer transactions, and distrust of traditional banking systems.
Brazil, the region’s largest economy, has introduced regulatory frameworks for crypto firms. In 2023, the country’s securities regulator, the Comissão de Valores Mobiliários (CVM), approved rules allowing local and foreign funds to invest in cryptocurrencies.
Mercado Bitcoin holds a virtual asset service provider licence in Brazil and has positioned itself as a compliant platform in a market where regulation is tightening.
Tether Under Scrutiny
Tether continues to face scrutiny from regulators over the transparency of its reserves and business practices. The company has said its stablecoins are fully backed by cash, cash equivalents, and short-term debt, but critics have called for more detailed audits.
Despite regulatory pressure in the United States and Europe, Tether has maintained its dominance in the stablecoin market, with USDT accounting for more than 70 per cent of stablecoin trading volume globally.
The company has not disclosed the total size of its venture portfolio or its broader investment strategy in emerging markets.