Coinbase’s recent report titled “Where next for crypto in Latin America” which is aimed at its institutional investors, mentions Brazil 31 times, compared to Mexico’s 17 times. The exchange highlights in the report, the rapid development of “direct trading” of cryptocurrencies in Brazil. In it, the exchange also mentions the “seven-fold year-on-year increase through August” in trading volumes at Mercado Bitcoin, which is the largest cryptocurrency broker in Latin America. Beyond this talk, Coinbase is expected to confirm this increased interest in the region soon via a strategic purchase.
Coinbase: the avalanche behind the purchase of a crypto unicorn
According to a March 27, 2022 article in the Estadão media, Coinbase could finalize in April 2022, the purchase of Brazilian company 2TM, which is the parent company of Mercado Bitcoin. The company 2TM became a unicorn in 2021. Its valuation exceeds $2 billion.
Coinbase acquires through the purchase of 2TM, the companies in which the holding company has stakes. 2TM had acquired in January 2022, CriptoLoja which is a cryptocurrency exchange based in Lisbon, Portugal. The company is also the owner of Meubank, MB Digital Assets, Bitrust, Blockchain Academy, MezaPro, Wuzu, and Portal do Bitcoin.
The adoption of cryptocurrencies in Brazil is partly supported by the country’s leaders. Rio de Janeiro, which is the second largest city in Brazil, will accept payment of some taxes in cryptocurrencies, in 2023. According to the company Triple-A, more than 10 million Brazilians would hold cryptocurrencies today.
Coinbase isn’t the only cryptocurrency exchange eyeing the Brazilian crypto market, which is apparently experiencing strong growth. Binance also wants to acquire a brokerage there to strengthen its presence in South America.
