Bitfinex buys stake in Chilean crypto exchange OrionX
Tether’s sister crypto exchange, Bitfinex announced that it has made an undisclosed investment in OrionX, a Chilean crypto exchange, as part of its strategy to expand its presence in Latin America. The specific details and financial terms of the investment were not disclosed.
Orionx, established in 2017, has originally emerged as a crypto exchange. The company has then evolved into the region’s first cryptobank, providing users with a wide range of crypto-related services. Building on its accomplishments in Chile, a comparatively wealthy South American nation, Orionx is now focused on expanding its operations to Peru, Colombia, and Mexico. The company has set an ambitious target of surpassing one million users by 2024.
By partnering with OrionX, Bitfinex aims to strengthen its footprint in the region and tap into the growing crypto market in Latin America.
The move comes months after Coinbase laid out its strategy to build a tech hub in Latin America. Following this acquisition, Coinbase’s next steps will be to expand outside of Brazil, hopefully finding acquisitions in Chile, Colombia, Mexico and Argentina.
“Having a strategic collaboration with a company like Bitfinex will play a vital role in advancing our project in LATAM. We firmly believe that their involvement will provide a substantial impetus to our capital raising activities,” stated Joel Vainstein, cofounder of Orionx. “We are confident that their extensive experience and proven product portfolio will expedite our own product development and user base expansion, positioning us as the benchmark in the region.”
After years of court battles in Chile, cryptocurrency exchanges were allowed to open bank accounts through a financial institution that established a protocol to serve these businesses. Chile’s central bank also announced last year a strategy for the potential roll-out of its own digital currency as policymakers seek to keep pace with fast-spreading cryptocurrencies.
Bitfinex’s investment in Orionx aligns with its broader strategy to expand its presence in Latin America and other emerging markets. In recent years, the exchange has actively engaged in initiatives in El Salvador, where Bitcoin was adopted as legal tender.
Furthermore, Bitfinex Securities El Salvador obtained the country’s first Digital Asset Service Provider license in April, enabling the issuance and trading of tokenized assets in compliance with the innovative Digital Assets Law.
