by Sergio Goschenko
Bitso, the Mexico-based cryptocurrency exchange, has announced a new partnership with Addem Capital, a debt fund that provides startups and other companies with financing options. The cryptocurrency exchange will process payments for the fund and provide conversion functions, allowing it to accept cryptocurrency as part of its payment options.
Cryptocurrencies are starting to be included more and more in traditional financial structures in the world and also in Latam. Bitso, a Latam-based exchange, announced a partnership with Addem Capital, a Mexican debt fund that allows startups to get access to financing structures. On the importance of these decentralized finance methods, Pedro Cetina, co-founder and managing partner of Addem Capital, stated:
Cryptocurrencies and DeFi protocols have the potential to become a driver for financial inclusion in Latin America. Our model intrinsically has some operational complexity, cryptocurrencies come to revolutionize the model through which we operate.
According to Addem Capital’s vision, cryptocurrencies can make the VC funding market for tech companies in Latam grow more — a market that reached $15 billion in 2021, according to a joint statement.
Bitso, as a crypto exchange, will perform the function of a payments provider, receiving the cryptocurrencies from investors, and allowing Addem to convert them to fiat currencies depending on its needs. This will ease the tasks that Addem needs to fulfill related to compliance, with the exchange taking care of KYC (Know Your Customer) and other related procedures.
On the vision that Bitso has regarding the use of crypto for these purposes, Carlos Lovera, business development leader at Bitso, stated:
We understand the great opportunity that cryptocurrencies offer us to revolutionize various sectors, giving entrepreneurs access to investment tools and capital in a faster, simpler and more transparent way, allowing their local development to prosper in a global economy.
Even during the current market downturn, Bitso has announced new yield products that allow its customers to receive an income with their stablecoin and bitcoin deposits, seeking to offer more opportunities for customers to increase their wealth during these high inflation times. However, the company has also been affected by the situation, laying off 80 employees of its 600-employee workforce as part of its long-term business strategy.
What do you think about the partnership between Bitso and Addem capital? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market … read more.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this … read more.