In a bid to encourage the continued adoption of cryptocurrencies in Brazil, 2ND Market and digital asset custody platform GK8 have joined forces to increase the range of cryptocurrencies available in the country.
In accordance with the collaboration agreement, GK8 will grant 2ND Market a license for its institutional-grade custody platform so that Brazilian users can access a greater selection of cryptocurrency goods and services. To give consumers access to decentralized finance (DeFi) and Web3 crypto assets, 2ND Market will specifically make advantage of GK8’s interface with MetaMask Institutional, a multi-custodial wallet.
GK8, which was established in 2018, is said to manage $50 billion worth of digital assets, up from $1 billion two years earlier, and uses an air-gapped Cold Vault to prevent cyberattacks.
The company has formed custody alliances with a number of platforms, including the Stellar blockchain network, the State Street-Backed Securrency, and the cryptocurrency trading platform INX.
A technology ecosystem called 2ND Market works to connect infrastructure and cryptocurrency use. The holding firm runs a number of organizations that collaborate to facilitate the integration and adoption of cryptocurrencies in Brazil.
A report by cryptocurrency exchange KuCoin that showed a rise in Brazilian cryptocurrency use was cited by GK8 as a major justification for the agreement. Over 34.5 million Brazilians, or over 16% of the population, have access to digital assets like Bitcoin and Ether, according to KuCoin research.
Brazil embraces more crypto adoption
Brazil was ranked first in the world for the adoption of digital assets, according to a separate survey from the Gemini cryptocurrency exchange released in April.
Brazil is becoming more and more adoptive of cryptocurrencies. According to a recent report by Brazil’s tax office, as of August, over 12,000 enterprises have digital assets recorded on their books. Rio de Janeiro recently declared that it would start accepting cryptocurrency for payments of real estate taxes.
Lior Lamesh, co-founder and CEO of GK8, responded to a question on the state of cryptocurrencies in Brazil by saying that both rising inflation and a depreciating local currency have sped up adoption:
“With inflation at 10% and a weakening Brazilian real, it is no wonder why crypto adoption in Brazil stands at approximately 16%. In fact, Brazil is at #7 in the Chainalysis crypto adoption index, the highest-ranked country in South America, and not far behind the USA. We believe that macroeconomic winds will continue to drive adoption higher.”
