Tether Invests $20 Million in LatAm Exchange... Why Did It Fund a Ripple Partner?

▲ Tether, Ripple, Mercado Bitcoin, Virtual Assets/AI Generated Image

Tether has invested $20 million in Ripple's key Latin American partner. Mercado Bitcoin, which has listed over $200 million in real-world assets on the XRP Ledger, is accelerating its tokenization and digital payment business expansion.

According to crypto media outlet U.Today on July 7 (local time), Tether made a strategic investment of $20 million in Mercado Bitcoin, a Latin American digital asset exchange and on-chain financial platform. The raised funds will be injected into expanding blockchain-based infrastructure in Brazil and the Latin American region. Tokenization, digital payments, and credit markets are the main business areas.

Mercado Bitcoin is a key regional partner of Ripple. The two companies have adopted Ripple Payments to support cross-border corporate fund operations between Brazil and Portugal. Ripple has also supported Mercado Bitcoin's large-scale tokenization project.

This project also included a plan to list over $200 million in permissioned real-world assets on the XRP Ledger (XRPL). Mercado Bitcoin plans to expand its tokenized investment products based on Tether's new investment. Funds will also be injected into stablecoin-based payment networks, lending and credit businesses, and international market expansion.

Established in 2013, Mercado Bitcoin currently has approximately 4.5 million users. It holds over 10 licenses in Brazil and Europe. It has also secured a payment institution license from the Central Bank of Brazil.

Tether's business in Brazil is also expanding. Oobit, a payment application supported by Tether, recently integrated with Pix, an instant payment network created by the Central Bank of Brazil. U.Today reported that 170 million Pix users can now deposit Brazilian Reals.

[Article Key Summary]

-Tether strategically invested $20 million in Mercado Bitcoin, Ripple's key Latin American partner.

-Mercado Bitcoin pursued a tokenization project to list over $200 million in permissioned real-world assets on the XRP Ledger.

-New funds will be allocated to expand tokenized investment products, stablecoin payment networks, and lending/credit businesses.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*