According to Bloomberg News, Coinbase Global Inc., the US cryptocurrency exchange, is about to close the acquisition deal of 2TM, which is a Brazilian holding. It is in control of Mercado Bitcoin, which happens to be the largest crypto brokerage firm in Latin America. The deal is likely to end towards the end of April, as revealed by O Estado de S Paulo, a local newspaper, without divulging how it gathered this information.
The impact of the deal
The talks that were initiated last year are part of the effort of Coinbase to broaden operations in a market that is getting increasingly competitive and one where Binance Holdings Ltd is operating as the major competitor. However, there was no comment from either 2TM or Coinbase on the report.
Binance is also looking for acquisition opportunities in Brazil, as per the newspaper, stating that the cryptocurrency market in the country is anticipated to reach the 120 billion reais mark, which is equivalent to $25.3 billion.
Bloomberg News also reports that 2TM, a crypto unicorn in Brazil, would offer leverage to Coinbase, which needs to secure a position as the market leader in Latin America. The holding behind Meubank, Mercado Bitcoin, MB Digital Assets, Blockchain Academy e MezaPro, and Bitrust was valued at approximately $2.2 billion in the latest Series B funding that SoftBank Group Corp, Japan led.
The acquisition would also offer 2TM, which has already bought many companies in Brazil, an opportunity to foster growth in Latin America by expanding their business opportunity in Argentina, Mexico, and Chile.
