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Crypto: Coinbase close to acquiring the 1st crypto exchange in Brazil

Exchange platform Coinbase is reportedly finalizing the acquisition of 2TM, the parent company behind Mercado Bitcoin, for $2.2 billion. Mercado Bitcoin is currently Brazil’s leading crypto exchange owned by 2TM, an industry giant. Coinbase would then see itself gain a prominent position in Latin America.

The information has not been made official by either party involved, Coinbase and 2TM (Mercado Bitcoin’s parent company), but it seems that negotiations have been underway since last year.

Local newspaper Estadão, Brazil’s 3rd largest media outlet, reports that the Coinbase acquisition could be completed by next month.

Mercado Bitcoin is not a new kid on the block, but the largest crypto currency exchange platform in Latin America. In fact, its parent company, 2TM, has confirmed its unicorn status by becoming a $1 billion company in 2021. Following several fundraisings, it now reaches a valuation of $2.2 billion. 2TM has also pursued an acquisition strategy, particularly in Portuguese-speaking countries. In January, Mercado Bitcoin bought Portuguese CriptoLoja, a crypto-currency exchange based in Lisbon.

2TM is simply considered the biggest company in the crypto sector in Latin America along with Mexico’s Bitso exchange. A takeover of Coinbase would then offer the latter a preferential position of leader on the Latin continent.

Indeed, while Coinbase has nearly 90 million verified users by being active in dozens of countries, Mercado Bitcoin alone totaled more than 3 million users.

Brazil is rapidly opening up to crypto currencies as this sector has grown all the more impressive in Latin America in recent months. This type of announcement is not expected to be an isolated case as Binance is also reportedly looking for new acquisition opportunities in Brazil, according to Estadão.

According to estimates, the crypto-currency market in Brazil is expected to reach 120 billion Brazilian reals. Figures that do not seem unattainable as the country works smartly to democratize crypto currencies.

source : Estadão

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