Coinbase, a leading US-based cryptocurrency exchange, is reportedly close to acquiring 2TM, the unicorn company that owns Mercado Bitcoin, the largest crypto exchange in Latin America (LATM). The exchange has reportedly been in talks to acquire the company since last year, and according to local media, the deal could close in April, given that Coinbase has expanded its operations to Brazil.
Coinbase Targets Expansion With 2TM Acquisition
Coinbase, one of the first cryptocurrency exchanges to trade on the traditional stock exchange, aims to expand its operations to LATAM through purchases. According to reports coming from Estadao, a Brazilian publication, the company Mercado is in talks to acquire Bitcoin’s parent company 2TM, a reference to cryptocurrency exchanges in LATAM.
The two companies are said to have been in talks since last year, and the deal could close next month, although there have been no leaks about whether Coinbase has decided to pay for the Brazilian unicorn. However, 2TM was valued at more than $2 billion in its latest Series B funding round, with participation from companies such as SoftBank, 10T and Tribe Capital. As noted by the exchange in a shareholder letter in February, this will be part of Coinbase’s expansion policy to bring more economic freedom to the world.
The report also stated that Coinbase shifted its interest to Mercado Bitcoin after talks broke down around its acquisition of Mexico-based exchange Bitso with a presence in LATAM.
Exchanges entering LATAM through Brazil
The latest developments suggest that, while other countries may have a more developed cryptocurrency framework, or a more vibrant crypto community, exchanges and companies are turning to Brazil to enter LATAM and offer services. Another major cryptocurrency exchange, Binance, is also investing in Brazil. The company announced this month that it has signed a memorandum of understanding with the goal of acquiring Simpaul Investments, a regulated brokerage firm, as part of its investment expansion policy.
2TM currently has over 3.2 million customers, which, depending on how Coinbase handles this acquisition, may be directly assigned to the company. At the same time, 2TM had expansion plans in place to reach other regions of the continent, including Mexico, Argentina, Chile and Colombia, which could remain or change if the acquisition goes smoothly and talks end next month.
What do you think about Coinbase’s acquisition of 2TM, Mercado Bitcoin’s parent company? Tell us in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.