Cryptocurrency exchange company Coinbase is planning to buy 2TM, the proprietor of Brazilian-based cryptocurrency exchange Mercado Bitcoin.
The negotiations for the deal have reportedly been happening for the past 12 months and are expected to be completed by the end of April.
The announcement comes as major cryptocurrency exchanges shift attention to the Brazilian market amid favorable conditions and the increasing adoption of stablecoins.
Mercado Bitcoin had more than 3 million clients as of 2021, of which about 1.1 million were enrolled within the year. The company recorded trading volumes of $7.1 billion in the period.
Coinbase has hinted at plans to acquire banks and payment processors in Brazil. The company established an engineering hub in the country in 2020.
2TM has been eying acquisitions in Argentina, Chile, and Mexico. The company bought a majority stake in Portugal’s crypto exchange, CriptoLoja.