Brazil’s growing demand for crypto strengthens Paxos’ LatAm presence 

OKTO builds up Brazil standing via deal between U4C and Paraiba Lottery

Blockchain infrastructure provider Paxos has continued its growth into LatAm, recording an increase in demand for products in Brazil. 

In the last 18 months the company has started working with some of the largest regional enterprises, including Mercado Libre, Nubank and PicPay, for the provision of digital asset services, risk management and corporate control tools. 

Michael Coscetta, CRO of Paxos, commented: “We see strong momentum in Brazil from large enterprise companies looking to provide crypto, stablecoin and gold to their customers. 

“More than ever they are exclusively looking to work with regulated, safe partners. Adoption will only accelerate given Brazil’s push for regulatory clarity. We believe it’s only a matter of time before crypto will be viewed as a must-have component in any portfolio.”

Part of Paxos’ offering include the regulated Pax Dollar (USDP) and Pax Gold (PAXG) tokens, with the former serving as a fully-reserved one-to-one digital dollar and the latter being backed by one ounce of LBMA gold. Both assets are regulated by the NY Department of Financial Services. 

Arnoldo Reyes, Head of Latin America at Paxos, added: “The appetite and pace of Brazilian consumers adopting digital asset products and services continues to accelerate. 

“In 2022, Paxos announced key partnerships with leaders like Mercado Libre, Mastercard, Nubank and PicPay. 

“We believe that embedding crypto as part of the value proposition will be fundamental to attracting, engaging and retaining customers in Brazil. We also believe that forward-looking policies will promote greater engagement and partnership between companies like Paxos and public sector stakeholders like the Central Bank of Brazil. 

“Constructive public-private collaboration will support the accelerated adoption of blockchain and crypto which will drive economic growth for companies and consumers.”

It is expected that Paxos will continue to increase its Brazilian market share thanks to the local government’s democratic approach towards the blockchain space and its positive sentiment towards crypto. This would make the supply of USDP and PAXG to enterprises like Nubank easier. 

Thomaz Lysakowski Fortes, General Manager of Nubank, commented: “Democratising cryptocurrencies involves not only the complexity-free experience that Nubank Cripto delivers, but also a robust infrastructure that gives security to customers interested in taking their first steps about where they are putting their money. 

“With Paxos and its expertise as a leading blockchain infrastructure provider, we have a partner that guarantees global protection in the custody of our customers’ crypto assets and, as a result, the confidence to learn and move forward in this huge journey of opportunities that is the cryptocurrency universe.”