Brazilian cryptocurrency exchange Foxbit gets $21 million from Chinese OK Group
Photo: Courtesy

Brazilian cryptocurrency exchange Foxbit gets $21 million from Chinese OK Group

With the investment, Chinese blockchain technology and services provider OK Group joins the board of Foxbit, which started as a crypto exchange and now targets the huge B2B Brazilian market

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Foxbit, a Brazilian crypto-based solutions platform, announced a $21 million (nearly BRL 110 million) Series A round led by the OK Group, a blockchain technology and services provider founded in China in 2013, now operating in more than 180 countries and serving a 50 million user base. With the investment, OK Group takes a seat on the board and a minority stake in the startup

Founded in 2014 by João Canhada (CEO), Ricardo Dantas (co-CEO), and Felipe Trovão, Foxbit started out as a cryptocurrency and digital asset exchange and, in 2021, began an expansion strategy by launching new products and services aimed at the B2B and B2B2C market, including asset tokenization, Crypto as a Service, and crypto payment methods. Foxbit’s goal is to be the primary partner for national players who want to join the crypto market.

“Our big move from 2021 was to enter the B2B market. Foxbit went from crypto exchange to a complete crypto solutions platform for both investors and businesses,” Dantas explained in an interview with LABS. 

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Foxbit’s portfolio currently includes, besides the exchange that trades more than 30 cryptocurrencies, the solutions called Foxbit Tokens, for assets tokenization through blockchain; Foxbit Pay, so that companies and stores can be paid in cryptocurrencies; and Compra Fácil, a Crypto as a Service solution that allows Foxbit clients to offer cryptocurrency trading. The startup also offers Foxbit Invest, an advisory and support service in custody and accounting for investors who want to buy and sell large volumes of crypto assets. 

Foxbit does not disclose absolute numbers of its operation, but the strategy of expanding the portfolio seems to have worked: according to the startup, in 2021 the user base jumped from 400,000 to over 800,000 and currently has 1 million registered users. In total, the platform has already traded more than BRL 20 billion in crypto. 

OK Group’s investment in Foxbit comes at a time of speeding up and maturing of the crypto market in Brazil – the Central Bank has even indicated it is drafting a proposal for regulation and oversight of financial transactions made with crypto in the country. 

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“Some regulation will definitely bring legal security for the investor who wants to join this market but doesn’t feel comfortable yet,” Canhada said, adding that he believes that for Foxbit there won’t be any major changes.  “We already follow the IRS guidelines and the best security and anti-fraud practices.” 

According to the founders, the partnership with OK Group backs up the startup‘s value and security proposition and attests to the company’s competitiveness. “From the beginning, Foxbit had been operating in an independent way, without any major investor behind it. Now we understood that this investment was a necessary step for us to continue improving the services provided to our customers. In addition, the OK Group is one of the largest crypto brokerage houses in the world, and Brazil is a large market in expansion, so it was a perfect match,” Canhada explained. 

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Foxbit will use the capital raised to grow its product and technology teams, expand its portfolio with new integrations, reduce service fees by using more blockchain networks, improve its platform and app, and develop more solutions focused on the B2B market, aiming to become the major partner of traditional players that want to enter the crypto market. The partnership with OK Go will also bolster Foxbit’s OTC trading desk focused and selling and buying large volumes of cryptocurrencies. 

“We have been in this crypto market for a few years and have seen the maturing of the market and of the Brazilian investor. There are still some issues, such as the idea of fast money, which slows down this maturation process a bit, but we see a huge potential in the Brazilian market, there are many opportunities to explore, especially in the B2B and OTC market for large investors,” said Dantas.