Tether, the issuer of the world’s largest stablecoin USDT, has invested $20 million in Mercado Bitcoin, Brazil’s largest cryptocurrency exchange, as part of a strategic expansion into Latin American regulated blockchain finance.
The investment, announced Wednesday, will support the development of tokenisation infrastructure, stablecoin adoption, and regulated digital asset services across the region. Mercado Bitcoin operates under Brazil’s central bank authorisation and serves over 4 million users.
Mercado Bitcoin, founded in 2013, operates as a regulated financial institution under Brazil’s Securities and Exchange Commission (CVM) and the central bank. The exchange processes over $1 billion in monthly trading volume and offers services including spot trading, derivatives, and custody.
Tether’s investment will be used to expand the exchange’s infrastructure for tokenised real-world assets, including commodities and securities, according to a statement from the company. The funding will also support the integration of USDT across payment and remittance channels in Brazil and neighbouring markets.
Regulated stablecoin infrastructure
Brazil has emerged as a testing ground for regulated stablecoin operations in Latin America. The country’s central bank is developing a framework for stablecoin issuers as part of broader digital asset regulations expected to take effect this year.
Mercado Bitcoin has been working with Brazilian regulators to establish compliant tokenisation and stablecoin custody services. The exchange holds multiple licences, including as a payment institution and securities intermediary.
Tether operates USDT, a stablecoin pegged to the US dollar with a market capitalisation exceeding $140 billion. The company has faced regulatory scrutiny in multiple jurisdictions over its reserve backing and transparency, but continues to dominate global stablecoin usage, particularly in emerging markets.
Latin American stablecoin adoption
Stablecoin adoption in Latin America has accelerated as businesses and individuals seek alternatives to volatile local currencies and cross-border payment solutions. Argentina, Venezuela, and Brazil have seen particularly strong growth in dollar stablecoin usage for remittances, savings, and commerce.
Mercado Bitcoin competes with international exchanges including Binance and Coinbase, as well as regional platforms such as Bitso and Ripio. The company has raised over $200 million in funding since 2021, including investments from SoftBank Latin America Fund and Paradigm.
Tether has made several strategic investments in payment infrastructure and blockchain platforms over the past year, including funding for peer-to-peer platforms in emerging markets. The company reported $6.2 billion in net profit for 2024, driven by interest income from its reserve assets.
The Brazilian central bank is expected to finalise stablecoin regulations by mid 2025, establishing licensing requirements for issuers and service providers operating in the country.