Crypto exchange Bitso aims to capture 20% of the U.S.-to-Mexico remittance corridor by the end of 2020

Quick Take

  • Bitso has by now captured more than 2% of U.S.-to-Mexico remittance market – one of the world’s biggest remittance markets with about $35 billion yearly flow
  • The exchange hopes to achieve a 20% market share by the end of 2020.

Crypto exchange Bitso captured just over 2% of the remittance market from the U.S. to Mexico last year and has thus set a lofty goal for itself: to achieve a 20% market share by the end of 2020.

Founded in 2014, Bitso saw rapid growth in its XRP/Peso volume in the past year, from less than $500,000 at the beginning of 2019 to nearly $3.5 million. 

In a recent episode of The Scoop podcast, Bitso CEO Daniel Vogel told The Block that the exchange is gaining traction in the U.S. to Mexico remittance market. According to Vogel, that market represents one of the world’s busiest remittance corridors with approximately $35 billion in yearly transaction flow. 

In 2019, Bitso's volume on average accounted for over 2% of the U.S. to Mexico remittance market, he said. And that number continues to grow. In the fourth week of 2020, the exchange experienced its most active week, transacting around $24 million in remittances – about 3.5% of the total market, he said.

"Since the beginning of Bitso, we always wanted to make sure that cryptocurrencies were used for something more than just speculation," Vogel said. "We've lived abroad and we had the opportunity to see the high costs involved in sending money back home. When we learned about Bitcoin, one of the things that got us very exciting is eliminating those costs."

Conventionally, he explained, if someone in the U.S. wants to send money back to their families in Mexico, they have to go through a series of intermediaries before the recipient gets to pick up the cash. The process usually takes a long time. As a result, the money transmitter often has to take out loans to cover its liabilities in Mexico, which incurs a high cost of capital.

THE SCOOP

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