Mexican Crypto Exchange Bitso Reaches 1 Million Users in Brazil

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The Latin American cryptocurrency landscape is undergoing rapid transformation, with cross-border expansion becoming a key growth strategy for leading platforms. At the forefront of this movement is Bitso, a Mexican-based digital asset exchange that has officially surpassed 1 million users in Brazil—just one year after launching in the country. This milestone underscores the growing appetite for crypto adoption in one of South America’s largest economies and highlights Bitso’s strategic positioning in the region.

Rapid Growth Amid Market Volatility

According to Thales Freitas, Bitso’s Brazil country manager and former executive at global financial institutions Citi and HSBC, the platform achieved the 1 million user mark ahead of projections. "We beat 1 million users in Brazil earlier than expected, and our transaction volumes grew by 66% in June from May," Freitas revealed in an exclusive interview.

Notably, this surge occurred during a period of heightened market volatility—commonly referred to as the "crypto winter"—where major cryptocurrencies like Bitcoin and Ethereum experienced significant price corrections. Despite these challenges, Freitas emphasized that July’s performance has already outpaced June, signaling strong resilience and sustained user engagement.

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Strategic Incentives Driving User Adoption

To attract and retain Brazilian investors—many of whom traditionally favor fixed-income instruments—Bitso has introduced competitive yield-generating products. The platform now offers annual returns of up to 15% on stablecoin deposits, leveraging digital assets pegged to stable fiat currencies like the U.S. dollar.

"Brazilian investors love fixed income, and stablecoins are a good way to diversify," Freitas explained. This insight into local investor behavior has allowed Bitso to tailor its product offerings effectively, bridging traditional financial preferences with innovative blockchain-based solutions.

Stablecoins have emerged as a critical gateway for mainstream crypto adoption in high-inflation or volatile currency environments. In Brazil, where economic uncertainty periodically influences consumer behavior, the appeal of dollar-pegged digital assets is particularly strong.

Regulatory Landscape and Local Partnerships

While Bitso continues to scale its operations in Brazil, it remains actively engaged with regulatory authorities. The company is currently awaiting approval from Brazil’s central bank for a payment institution license, which would grant it broader operational autonomy and enhance trust among users and institutional partners.

Until then, Bitso operates through strategic collaborations with licensed Brazilian financial entities, including Banco Genial and Starkbank. These partnerships enable the platform to offer compliant on-ramps and off-ramps for fiat-to-crypto transactions, ensuring seamless access while adhering to local financial regulations.

This hybrid model—combining innovation with regulatory prudence—has become a blueprint for international fintechs entering Brazil’s complex but rewarding financial ecosystem.

Expanding Footprint Across Latin America

Founded in 2014, Bitso was one of the earliest cryptocurrency exchanges in Latin America. Its $250 million funding round in May 2021 catapulted it into unicorn status, valuing the company at $2.2 billion and setting the stage for aggressive regional expansion.

Brazil now represents Bitso’s second-largest market, underscoring the nation’s pivotal role in the region's digital asset evolution. However, expansion is not one-sided: competition is heating up as Brazilian players look northward.

Just recently, Mercado Bitcoin, a SoftBank-backed crypto exchange and dominant player in Brazil, announced plans to enter the Mexican market. This development signals a new phase in Latin America’s fintech rivalry—one defined by reciprocal cross-border ambitions and localized innovation.

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FAQ: Understanding Bitso’s Rise in Brazil

Q: What makes Bitso different from other crypto exchanges in Brazil?
A: Bitso combines regional expertise with product innovation, particularly through high-yield stablecoin programs tailored to Brazilian investors’ preference for fixed-income alternatives.

Q: Is Bitso regulated in Brazil?
A: While not yet fully licensed independently, Bitso operates under partnerships with regulated financial institutions like Banco Genial and Starkbank. It has applied for a payment institution license from Brazil’s central bank.

Q: Why are stablecoins so popular in emerging markets like Brazil?
A: Stablecoins offer protection against currency depreciation and inflation. Since they’re often pegged to stable assets like the U.S. dollar, they provide a reliable store of value and medium of exchange.

Q: How does Bitso compare to local competitors like Mercado Bitcoin?
A: Bitso differentiates itself through its international experience and focus on yield-generating products. Meanwhile, Mercado Bitcoin dominates in brand recognition and local infrastructure—but both are now competing across borders.

Q: Can I earn interest on my crypto holdings with Bitso?
A: Yes, Bitso offers up to 15% annual yield on stablecoin deposits, making it an attractive option for passive income seekers within the crypto space.

Q: What is driving crypto adoption in Latin America?
A: Factors include financial inclusion gaps, high remittance costs, inflation hedging needs, and increasing smartphone penetration—all creating fertile ground for digital asset platforms.

The Road Ahead: Innovation, Competition, and Inclusion

As Bitso consolidates its presence in Brazil, the broader narrative points toward deeper financial inclusion through technology. Cryptocurrencies are no longer niche speculative assets—they’re evolving into practical tools for savings, payments, and wealth preservation across Latin America.

With user numbers climbing and transaction volumes rising even during downturns, Bitso’s success reflects a fundamental shift: digital assets are becoming embedded in everyday financial behavior.

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Yet, sustainability will depend on continued innovation, regulatory collaboration, and user education. As regional competitors begin to mirror each other’s strategies, the next frontier may not be about who enters a new market first—but who builds the most trusted, accessible, and resilient ecosystem over time.

For now, Bitso’s achievement stands as a testament to the power of localized strategy within a global digital economy.

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