As a payment institution, the new fintech MB Pay will enable certain digital banking services to the crypto exchange’s users in the country.
Cryptocurrency exchange Mercado Bitcoin was granted a payment provider license from Brazil’s central bank on June 2, according to local media reports. With the license, the company will launch its fintech solution MB Pay.
“The approval of the Central Bank is a crucial step, as it allows us to continue expanding our business and providing a better service to our customers,” said Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin.
As a payment institution, MB Pay can provide Brazilian users with certain digital banking services using crypto assets held on the exchange, such as investing in digital fixed income, staking, and other financial transactions. A debit card offering a crypto off-ramp for users is expected to go live soon.
Earlier this week, traditional local broker Guide Investimentos also announced a partnership with Mercado Bitcoin to enter the digital asset market.
Mercado Bitcoin’s fintech rollout had been planned for 2021, but was delayed due to the regulator’s approval process. The development came on the same day as Mercado Bitcoin was ordered to return over 2,182 BTC (~$59.3 million as of writing) back to a group of investors alleging that a co-founder and former executive had withheld funds in a fabricated hack in 2013.
A vibrant demand for digital solutions and a population of nearly 214 million have drawn crypto firms to the Latin America country. Binance has previously ranked Brazil among its top global markets. Its local partner, Latam Gateway, was also granted a payment provider license in the country on May 19.
Other crypto exchanges licensed as payment providers in Brazil include Crypto.com and Bitso.
Coinbase is also expanding operations in the country. Since March, the American exchange has partnered with local payment providers to offer crypto purchases, as well as enable deposits and withdrawals in the local currency.