Coinbase Nears Deal to Buy Brazil Crypto Unicorn 2TM, Media Says

U.S. cryptocurrency exchange Coinbase Global Inc is set to close the acquisition of 2TM, a Brazilian holding that controls Latin America’s largest crypto brokerage Mercado Bitcoin, by the end of April, local newspaper O Estado de S.Paulo reported, without revealing how it obtained the information.

The talks, which began last year, are part of Coinbase’s push to broaden operations in an increasingly competitive market that has also caught the eye of its major rival Binance Holdings Ltd. COINBASE and 2TM did not immediately comment on the report.

Binance is also on the lookout for acquisitions in Brazil, the newspaper says, noting that the country’s cryptocurrency market is expected to reach 120 billion reais ($25.3 billion).

Brazil’s crypto unicorn 2TM would give Coinbase the leverage needed to secure a market leader position in Latin America. The holding behind Mercado Bitcoin, Meubank, MB Digital Assets, Bitrust, Blockchain Academy e MezaPro was at roughly $2.2 billion in the latest Series B funding round led by Japan’s SoftBank Group Corp.

The acquisition also allows 2TM, which has already purchased several companies in Brazil, to speed up growth in Latin America, expanding into Chile, Colombia, Mexico and Argentina.