Paradigm makes its first investment in Brazil with a R$ 70 million contribution to a crypto startup

Source: Exame Original Title: Paradigm makes its first operation in Brazil with an investment of R$ 70 million in crypto startup Original Link:

Venture capital giant Paradigm has announced its first investment in Brazil. The chosen company was the startup Crown, which developed the BRLV cryptocurrency pegged to the Brazilian real. In total, the company raised US$ 13 million (about R$ 70 million at the current exchange rate) with the investment.

With US$ 10 billion in assets under management in 2024, Paradigm has established itself as one of the leading venture capital firms in the cryptocurrency market. However, the company had not yet made any investments in Brazilian startups since it began operations in June 2018.

Paradigm led the investment round, which resulted in a US$ 90 million valuation for Crown. In a statement regarding the fundraising, Crown highlighted its focus on stablecoins, cryptocurrencies pegged to other assets. They are described as “crucial pieces of financial infrastructure, as they drive the migration from traditional financial systems to digital asset systems.”

“Brazil, the fifth largest cryptocurrency market in the world – where more people have invested in digital assets than in traditional stocks – is not dollarized and needs a world-class real-pegged stablecoin to drive this transition,” the company said.

Data released by Crown indicates that BRLV, its real-pegged stablecoin, has a market capitalization of R$ 360 million and has become the “largest emerging market stablecoin in the world.” The goal now is to bring the asset’s capitalization to R$ 1 trillion over the next decade.

Paradigm and Crown plan to “maximize security, compliance, and value delivered to our clients, including banks, fintechs, and companies” with BRLV. In addition, Crown said it intends to “bring institutional trust to the digital asset ecosystem.”

“The Paradigm team has been at the forefront of crypto innovation for many years, and their entry into Brazil reflects the work of all the developers who have been active here so far – and the huge opportunities that lie ahead for our sector,” the startup said.

For Crown, “this round allows us to accelerate product development, deepen integrations with financial institutions, and expand access for developers building solutions based on BRLV. The next chapter in the evolution of finance will be written in many places, but Brazil is once again proving to be a protagonist in this story.”