Cryptocurrency

Crypto Giant Coinbase to Buy Mercado Bitcoin as Competition With Binance Intensifies

Crypto Giant Coinbase to Buy Mercado Bitcoin as Competition With Binance Intensifies

  • Cryptocurrency exchange giant, Coinbase Global Inc. is reportedly in talks to acquire 2TM, the parent company of Latin America’s largest crypto exchange, Mercado Bitcoin
  • According to CoinDesk, the Brazilian crypto exchange has a trading volume of over $7 billion and more than 3.2 million customers
  • This follows a similar step by Binance to acquire Brazilian securities brokerage, Simpaul Investimentos

One of the world’s largest cryptocurrency exchanges, Coinbase Global has set its sights on completing one of the biggest crypto acquisitions so far.

Coinbase

The American crypto company is currently in talks to acquire 2TM, the owner of crypto trading platform, Mercado Bitcoin, according to Estadao newspaper.

Reports have it that Coinbase and 2TM have been holding talks about this acquisition since last year and a deal could be announced as soon as April.

Mercado Bitcoin

Mercado Bitcoin is hugely popular in Latin America as the exchange reached 3.2 million customers in 2021. 1.1 million of this total were also added in that year. The huge customer base has pushed the platform’s trading volume to $7.1 billion, according to CoinDesk.

Mercado Bitcoin’s drastic rise last year was aided by a $200 million Series B funding round and a $50 million second close of the funding that raised 2TM’s valuation at $2.1 billion.

Read also: Luna Foundation Acquires $1 Billion Bitcoin as Stablecoin Backing

Coinbase’s decision to complete this acquisition comes amid massive cryptocurrency adoption in Brazil in 2021. Many top exchanges have also switched their attention to the Latin American country.

Bitcoin

Binance made a similar move as CEO Chapeng Zhao announced earlier this month that the company had signed a Memorandum of Understanding to acquire Brazilian securities brokerage, Sim;paul Investment.

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