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.
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