TLDR
- Mercado Bitcoin plans to surpass $560 million in tokenized credit by year-end.
- The company’s core revenue from crypto trading is now under 60%.
- Mercado Bitcoin now offers tokenized private credit for Brazil’s underserved market.
- The firm is expanding its operations into Portugal and the U.S. markets.
Brazil’s Mercado Bitcoin is shifting its focus from being a crypto exchange to a broader financial services platform. The company plans to leverage blockchain technology behind the scenes, creating a seamless experience for users. With ambitions to become a comprehensive financial “super app,” Mercado Bitcoin aims to offer services like payments, investment, and remittances, all powered by blockchain, without customers needing to understand the technology.
Transition from Crypto Exchange to Financial Hub
Mercado Bitcoin, founded as a cryptocurrency exchange in Brazil, is making a strategic pivot. Initially focused on cryptocurrency trading, the company now aims to expand its offerings and become a central platform for various financial services. The company’s leadership is focused on building a “financial hub” that allows users to manage payments, savings, and investments in one place.
Daniel Cunha, head of corporate development at Mercado Bitcoin, emphasized that the firm’s goal is to cater to Brazilian users who want to manage all aspects of their financial life without the complexity of blockchain technology. “The customer doesn’t want to hear about blockchains and tokens. They want to know the rate, the risk, and the maturity date,” Cunha explained, referring to the company’s digital fixed-income products.
Introducing “Invisible Blockchain” to Users
Mercado Bitcoin’s new approach focuses on integrating blockchain technology in the background while presenting the service in familiar financial terms. The company has made efforts to avoid crypto-centric language, instead using terms like “digital fixed income” instead of “tokenization.” This change has helped the company attract a broader audience, particularly in markets like Brazil, where blockchain may not yet be widely understood.
The company’s leadership believes that the future of blockchain adoption lies in its invisibility. “We’re going to see a lot of people use blockchain without realizing they’re using blockchain,” Cunha said. The goal is to make blockchain a silent enabler of financial transactions rather than a noticeable feature. This approach could help bridge the gap between traditional finance and newer blockchain-based solutions.
Diversifying Revenue Streams and Expanding Geographically
Mercado Bitcoin’s revenue model is undergoing a significant transformation. While cryptocurrency trading remains the company’s core business, it now accounts for less than 60% of revenue. The company has been diversifying into other areas, including payments, asset management, tokenized investments, and custody services. The company expects trading to account for less than 30% of its revenue in the coming years.
Additionally, Mercado Bitcoin is expanding its geographical footprint. The company has already set up a client-facing operation in Portugal and is working on institutional partnerships in the United States. This international expansion aims to connect capital and investment opportunities across various markets, further solidifying Mercado Bitcoin’s position as a financial services provider.
Focusing on Tokenized Investment Products
One of Mercado Bitcoin’s main innovations is the introduction of tokenized investment products. These products are primarily focused on private credit, a market segment that the company believes is underserved in Brazil. The firm has set a goal of surpassing 3 billion reais (around $563 million) in tokenized credit issuance by the end of 2025. This move aligns with the company’s goal of combining blockchain technology with traditional financial products, making them more accessible to a wider audience.
About 20% of assets on the Mercado Bitcoin platform are now tokenized real-world assets (RWAs), a significant increase from just a few years ago. As Mercado Bitcoin continues to build its tokenized product offerings, it plans to expand its reach to new customers and markets, aiming to create a seamless financial experience for both individual users and small to medium enterprises.
By strategically positioning itself as a versatile financial hub, Mercado Bitcoin is positioning itself as a key player in Brazil’s evolving financial landscape.
