On Sunday, March 27, Brazilian newspaper O Estado de S.Paulo reported that giant crypto exchange Coinbase may be ready to acquire one of Brazil’s largest crypto unicorns 2TM. But per details of the report, the acquisition may likely not happen until the end of April.
Coinbase Eyes Market Leader Position In Latin America
While there is yet to be an official statement from Coinbase regarding this acquisition, it’s expected to help Coinbase establish a stronghold in the highly competitive Brazilian market. But there’s even more.
2TM is a Brazilian holding company that controls Mercado Bitcoin — Latin America’s largest crypto brokerage. Therefore, looking from a broader angle, the acquisition of crypto unicorn 2TM could also help Coinbase secure a market leader position in Latin America. However, Coinbase is not the only beneficiary in the acquisition deal. In some certain way, the acquisition will also ease the growth of 2TM, into Latin America and other countries like Mexico, Chile, Argentina, and Colombo.
Race To Become Market Leader
Meanwhile, it’s definitely a competition between Coinbase and Binance — one of the largest crypto exchanges in the world. According to the local newspaper, Binance itself was eyeing acquisitions in Brazil as well. And most likely, that is also in a bid to expand its footprint in the country, and Latin America at large.
Recall that Binance CEO Changpeng Zhao has openly spoken about the plans of the exchange to acquire banks and payment processing companies in the country, albeit in his recent visit to Sao Paulo, Brazil..
Also in this regard, the CEO has been to El Salvador, the first country to make Bitcoin a legal tender. Certainly, Zhao is looking to explore every available opportunity in Latin America, even as the crypto market continues evolving. And also bearing in mind, that the presence of giants like Coinbase and Binance will surely bolster market participation even more.
Brazil plays a good host to most of these top crypto players. In fact, the country’s crypto market is expected to reach 120 billion reais ($25.3 billion) soon enough.