Stark Bank Seeks to Fill Banking Gap for Brazil’s Crypto Startups
Brazilian digital bank Stark Bank is aiming to become the go-to financial institution for cryptocurrency startups in the country. The company sees a significant opportunity to serve this niche market, especially with the growing acceptance of crypto, partly fueled by emerging signals of support from U.S. political figures. Traditional lenders have been hesitant to embrace the crypto sector, creating a void that Stark Bank is eager to fill.
“The technology is here to stay, and our idea is to target that niche,” said Rafael Stark, CEO of Stark Bank, according to reports. The bank currently works with 52 firms focused on digital currencies and blockchain technology. It also assists nearly 800 clients with payment processing, bill payments, and corporate credit card management. Through its Stark Infra unit, the bank develops and sells technology solutions to both clients and third parties.
Stark Bank is actively refining its marketing strategies to complement the organic growth it has experienced through word-of-mouth referrals. “Competitors often look at what the other one is doing, and they see they’re using Stark,” Stark explained. “That happened a lot in the crypto segment.”
In April 2022, Stark Bank secured $45 million in a Series B funding round, with the investment firm Bezos Expeditions, representing Amazon founder Jeff Bezos’ personal investments, leading the deal. This marked the firm’s first investment in Brazil, following an initial $13 million investment from venture capital investors. In February 2024, Stark Bank reported that it processed 155 billion reais (approximately $27 billion) in payments during the previous year, a threefold increase. The company also more than doubled its net income, reaching 71.5 million reais. At the time, Stark Bank reported that it had 600 clients and was actively seeking to gain market share from established corporate banks in Brazil.
In related news, cryptocurrency exchange Bybit announced in January that it is expanding its efforts to promote mainstream crypto payments in Brazil with its new payment solution, Bybit Pay. This system allows users to make payments using both fiat currency and cryptocurrency and integrates with Brazil’s instant payment system, Pix, managed by the Central Bank of Brazil.
