Coinbase Is in Talks to Acquire Brazilian Crypto Exchange Operator 2TM

Coinbase (Nasdaq: COIN) is in talks to acquire 2TM, which is the operator of the top Brazilian crypto  trading platform  Mercado Bitcoin, local daily Estadão reported on Sunday.

Though the two exchanges did not reveal anything officially, they were already in negotiations for the deal since last year and are expected to enter into an agreement by the end of April.

The move can be seen as a part of the American crypto exchange giant’s plan to expand its operations on a global scale. In a letter released in February, the exchange also revealed its plans to enhance its base in the Latin American markets and is also is expanding its workforce.

A Major Crypto Exchange in the Region

Mercado Bitcoin is one of the largest crypto exchanges in Brazil. It added 1.1 million new users last year, closing the year with 3.2 million users, according to Coindesk. The trading volume on the local  exchange  also reached $7.1 billion in 2021.

Apart from the digital asset trading services, the Brazilian platform also provides services involving decentralized finance (DeFi) and is also involved in the development of a metaverse ecosystem.

The crypto exchange parent, 2TM also owns several other companies, including Meubank, MB Digital Assets, Bitrust, Blockchain Academy and MezaPro. The company is also planning to expand into Argentina, Chile, Colombia and Mexico through acquisitions.

2TM is also backed by deep-pocket venture capital companies. It raised $200 million last June and closed another $50 million funding round in November at a valuation of $2.1 billion.

Coinbase is not the only exchange to focus on its Latin American expansion. Its competitor Binance is also looking to acquire banks and payment processors in the region. It even signed a Memorandum of Understanding (MoU) to acquire Brazilian securities brokerage Sim;paul Investimentos.

The report further said that Coinbase’s interest in 2TM came after it failed to acquire Mexican crypto exchange Bitso.

Coinbase (Nasdaq: COIN) is in talks to acquire 2TM, which is the operator of the top Brazilian crypto  trading platform  Mercado Bitcoin, local daily Estadão reported on Sunday.

Though the two exchanges did not reveal anything officially, they were already in negotiations for the deal since last year and are expected to enter into an agreement by the end of April.

The move can be seen as a part of the American crypto exchange giant’s plan to expand its operations on a global scale. In a letter released in February, the exchange also revealed its plans to enhance its base in the Latin American markets and is also is expanding its workforce.

A Major Crypto Exchange in the Region

Mercado Bitcoin is one of the largest crypto exchanges in Brazil. It added 1.1 million new users last year, closing the year with 3.2 million users, according to Coindesk. The trading volume on the local  exchange  also reached $7.1 billion in 2021.

Apart from the digital asset trading services, the Brazilian platform also provides services involving decentralized finance (DeFi) and is also involved in the development of a metaverse ecosystem.

The crypto exchange parent, 2TM also owns several other companies, including Meubank, MB Digital Assets, Bitrust, Blockchain Academy and MezaPro. The company is also planning to expand into Argentina, Chile, Colombia and Mexico through acquisitions.

2TM is also backed by deep-pocket venture capital companies. It raised $200 million last June and closed another $50 million funding round in November at a valuation of $2.1 billion.

Coinbase is not the only exchange to focus on its Latin American expansion. Its competitor Binance is also looking to acquire banks and payment processors in the region. It even signed a Memorandum of Understanding (MoU) to acquire Brazilian securities brokerage Sim;paul Investimentos.

The report further said that Coinbase’s interest in 2TM came after it failed to acquire Mexican crypto exchange Bitso.

Source: https://www.financemagnates.com/cryptocurrency/news/coinbase-is-in-talks-to-acquire-brazilian-crypto-exchange-operator-2tm/