A crypto exchange based in Mexico, Bitso has announced that it will be entering into a partnership with debt fund, Addem Capital. The latter is known to provide financing options to startups and other firms. Payments for the funds will be processed via the crypto exchange and it will also offer conversion services that will allow the fund to offer cryptocurrencies as one of its payment options. Traditional financial structures all over the globe are integrating cryptocurrencies and the same is also applicable in Latin America. Based in Latam, Bitso has also decided to join the trend, hence partnering with the Mexican fund to offer financing structures to startups.
The managing partner and co-founder of Addem Capital, Pedro Cetinatalked about using decentralized finance methods for funding purposes. He said that Defi protocols, as well as cryptocurrencies, can facilitate financial inclusion in Latam. He stated that there was some operational complexity inherent in their model and cryptocurrencies would help revolutionize it. According to the vision of the debt fund, tech firms will see their venture capital funding market grow in Latin America thanks to cryptocurrencies. Statistics indicate that this market had already reached a value of $15 billion last year.
Since it is a crypto exchange, Bitso will adopt the role of a payments provider, as investors will send cryptocurrencies to the exchange. The platform will then convert them into fiat currencies for Addem Capital, depending on its requirements. This will assist the debt fund in meeting its compliance requirements because the exchange will take the responsibility of handling all KYC (Know Your Customer) procedures and other relevant details. As far as Bitso is concerned, its business development head, Carlos Loverastated that they were aware of the opportunities that cryptocurrencies can offer in terms of revolutionizing different sectors.
It can provide investors with capital and investment tools in a simpler, faster and more transparent way, which can contribute in the development of the global economy. Even though the cryptocurrency market as a whole is experiencing a downturn recently, things seem to be going well for Bitso. The crypto exchange recently introduced new yield products, which will help its customers in generating passive income on their bitcoin as well as stablecoin deposits. Hence, more customers will have the option of increasing their wealth, thanks to Bitso, even during such troubling economic times when inflation is soaring.
Nonetheless, this does not mean that the company has not suffered from the impact of the crypto downturn. The sudden crash in the market due to the implosion of TerraUSD and LUNA has brought about what people are calling a crypto winter. Bitsois also one of the companies that have decided to cut down its workforce in order to survive during these tough times. It announced that it would be laying off about 80 people out of its staff which comprises of 600 people. This step is part of the exchange’s business strategy for the long term.
