Coinbase is close to acquiring 2TM (the unicorn company which owns Mercado Bitcoin), the largest crypto exchange in Latin America (Latam). According to local media reports, the exchange had been in discussions to buy the company since 2013. The deal may close in April, allowing Coinbase to expand to Brazil.
Coinbase Targets Growth With the 2TM Acquisition
Coinbase is one of the first crypto exchanges to trade on stock market traditional. It plans to buy Latam to increase its operation. Estadao in Brazil reports that Coinbase is looking to buy 2TM (parent company of Mercado Bitcoin), a company known for its expertise in cryptocurrency exchanges in Latam.
Both companies were believed to be in negotiations since last year. It is possible that the deal will close next month. There haven’t been any leaks on the exact amount Coinbase paid for the Brazilian unicorn. 2TM, however, was worth more than $2B in the latest Series B round of funding. This included participation from companies like Softbank and Tribe Capital. It would form part of Coinbase’s expansion plan to offer more economic freedom worldwide, which was mentioned by the exchange in its February shareholder letter.
According to the report, Coinbase also expressed interest in Mercado bitcoin after discussions broke down over Bitso’s acquisition. Bitso is a Mexican-based exchange that has a presence at Latam.
Latam Exchanges Through Brazil
Recent developments indicate that exchanges and businesses are looking to Brazil to offer and enter Latam, despite having a better cryptocurrency ecosystem or more active crypto community. Binance, another popular cryptocurrency exchange is investing in Brazil. This month, Binance announced that it has signed a memorandum with the aim of acquiring Sim;paul Investimentos (a regulated brokerage company) as part of its expansion plan.
2TM currently serves more than 3.2million customers. This could, depending on Coinbase’s handling of the acquisition, be handed directly to the company. 2TM was also planning to expand into other countries on the continent such as Mexico, Argentina Chile and Colombia. If the deal goes through, these plans could be kept or modified.
What do you think about Coinbase’s acquisition of 2TM, the parent company of Mercado Bitcoin? Please leave your comments below.
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