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 have been 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’s plan to expand its operations on a global scale. In a letter released in February, the exchange revealed its plans to enhance its base in the Latin American markets and is also 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. Additionally, the trading volume on the local exchange reached $7.1 billion in 2021.
Apart from the digital asset trading services, the Brazilian platform provides services involving decentralized finance (DeFi) and is involved in the development of a metaverse ecosystem.
Moreover, the crypto exchange parent, 2TM owns several other companies, including Meubank, MB Digital Assets, Bitrust, Blockchain Academy and MezaPro. In addition, the company is planning to expand to Argentina, Chile, Colombia and Mexico through acquisitions.
Additionally, 2TM is 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.
Furthermore, the report said that Coinbase’s interest in 2TM came after it failed to acquire Mexican crypto exchange Bitso.
