According to local reports in Brazil, Coinbase is about to finalize a deal that would see it acquire the largest cryptocurrency exchange in Brazil after a year of negotiations.
According to the local newspaper Estadão, which did not reveal its sources, Coinbase, the main cryptocurrency exchange in the United States, is about to acquire TM2, owner of Mercado Bitcoin, the largest cryptocurrency exchange in Brazil.
The talks, which began last year, were part of Quinpis’ overall campaign to expand its operations and, according to local newspaper Estadão, the deal could be announced by the end of April.
However, there has been no official comment yet from either Coinbase or Mercado Bitcoin.
Brazil is a new destination for global companies
Interestingly, the city of Rio de Janeiro, the third most populous state in the country, has started accepting tax payments in cryptocurrencies.
“Nine days ago, I made a handshake deal with Mayor Eduardo Paes,” said Zhang Bingchao, CEO of Coinbase’s number one competitor Binance. Rio de Janeiro will accept cryptocurrencies to pay taxes and Binance will open an office in Rio. He did the part of it and we are working in our country”.
Amid the Brazilian boom in cryptocurrency adoption, which saw stablecoin trading triple in 2021 compared to the previous year, global exchanges like Coinbase, Binance and Crypto have turned their attention to Latin lands.
In November 2020, Quinpis announced the establishment of an engineering center in Brazil and opened several positions to expand its team there.
During his visit to Sao Paulo on March 16, Zhao said that Binance, for its part, plans to buy banks and payment processors in Brazil. For a company to sign a memorandum of understanding to acquire the Brazilian Securities Trading Company.
The number of users of Mercado Bitcoin reached 3.2 million customers in 2021, of which 1.1 million were added last year, according to the company statement, which added that the trading volume reached $7.1 billion in 2021.
In June, TM2 raised $200 million in a Series B funding round and $50 million in the second funding closing in November, valuing the company at $2.1 billion.
Roberto D’Agnoni, CEO of TM2, revealed that the company plans to grow in Latin America with acquisitions in Argentina, Chile, Colombia and Mexico. The company has acquired the lion’s stake in CryptoLoja, the first regulated cryptocurrency exchange in Portugal.
In addition to owning Mercado Bitcoin, TM2 also owns the companies Meubank, MB Digital Assets, Bitrust, Blockchain Academy, and MezaPro.
It is worth noting that according to Estadão newspaper, Mexican cryptocurrency exchange Bitso is also in Coinbase’s interest, but no deal appears to have been struck.