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Pantera partner says there’s still room to invest in exchanges across the globe

Aislinn Keely

Paul Verdattakit, a partner at blockchain investment fund Pantera Capital, said there is still reason to invest in exchanges. On last week's episode of The Scoop, Verdattakit explained part of Pantera's strategy is to invest in a variety of geographies.

Pantera itself has investments in 10 exchanges across six countries, including Circle, Abra, and Bakkt.

Verdattakit said this strategy isn't just integral to the expansion of Pantera's portfolio, it's essential to the expansion of cryptocurrency use. He's taken trips to multiple jurisdictions to better understand the financial needs and realities of each place.

"We decided to invest into local wallets and exchanges that are going to be providing regulated fiat onramps to consumers because we think that there is a reason for cryptocurrencies to exist for many different use cases, and you need liquidity, and therefore that's been a huge thesis," he said. "We've pretty much gotten to know exchanges in every single geography out there."

To get to know those exchanges, Verdattakit said local teams are integral to understanding regulation, the difficulties involved in banking and marketing to different geographic demographics. Additionally, he said larger players like Coinbase also make a difference in access.

"We need guys like Coinbase who are going to be interested in expanding to all these different geographies because of bitcoin potentially being a store of value," he said.