Coinbase, a top U.S.-based cryptocurrency trading platform, is close to acquiring 2TM. 2TM is the unicorn company that controls Mercado Bitcoin (Latam), the largest crypto exchange. According to local media reports, the exchange had been in discussions to acquire the company since last summer. The deal could close in April, allowing Coinbase to expand its operations into Brazil.
Coinbase Targets Expansion with 2TM Acquisition
Coinbase is one of the first cryptocurrency exchanges to trade on traditional stock markets. It plans to expand its operations to Latam by making purchases. According to reports from Estadao (a Brazilian publication), the company is looking to purchase 2TM, the parent company to Mercado Bitcoin. This would make it a reference point for cryptocurrency exchanges within Latam.
According to reports, the two companies have been in discussions since last year. The deal may close next month. However, there are no leaks regarding the amount Coinbase will pay for the Brazilian unicorn. 2TM was worth more than $2B in its most recent Series B financing round. This round had participation from companies like Softbank and Tribe Capital. This is part of Coinbase’s expansion strategy to provide more economic freedom around the globe, as stated in a 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 companies are looking to Brazil to offer services and enter Latam, despite having a better cryptocurrency framework or community. Binance, another popular cryptocurrency exchange is also investing in Brazil. , a company, announced that it had signed a memorandum to understand with the aim of acquiring Sim;paul Investimentos (a regulated brokerage firm) as part of its investment expansion strategy.
2TM currently serves more than 3.2million customers. This number could, depending on the way Coinbase handles this acquisition, be handed directly to the company. 2TM also had expansion plans for other parts of the continent like Mexico, Argentina and Chile. These might be retained or changed if the negotiations end next month.