Mercado Libre Injects Liquidity into Crypto Firms Paxos & 2TM

Mercado Libre, a publicly traded retail giant, based in Argentina has injected an undisclosed sum of money into two regional cryptocurrency-focused firms, Paxos and 2TM Group.

According to the company, the funding reinforces its presence in the crypto universe, boosting its development and adoption in the region.

2TM Group is the parent company of MercadoBitcoin.com.br, one of the most prominent digital currency exchanges in the region, and Paxos is a global leader in the crypto space and the current partner of Mercado Libre in the region. With the funding, both companies now have a more prominent backing from one of the region’s biggest conglomerates.

“As a leading technology company, we are actively evaluating the various innovations and opportunities around this market as it evolves, aiming to be a core participant in this disruption. Digital assets and blockchain technology represent a unique, global and collective phenomenon that breaks barriers and create a level, the open playing field for all users to achieve economic empowerment, which is very aligned with our mission as a company,” highlights Andre Chaves, Senior Vice President of Strategy and Corporate Development for Mercado Libre. 

As a company that is committed to seeing financial technology grow and evolve in Latin America, the investment marks another major milestone for the company in the core pursuit of its goals. With Mercado Libre now backing local crypto players, it is no longer uncommon for mainstream companies to wade into the digital currency ecosystem. 

Paypal Holdings Inc integrated crypto payments in its application back in 2020, a move that opened access to millions of retail merchants to accept Bitcoin and other altcoin payments. The Croatian supermarket chain Konzum Hrvatska also integrated Bitcoin payments back in the fourth quarter of 2021, marking an ambitious move by the company to support the growth and adoption of the nascent asset class.

Image source: Blockchain.news

Coinbase Reportedly to Acquire Mercado Bitcoin Owner 2TM

America’s largest trading platform, Coinbase Global Inc, is reportedly on track to acquire 2TM, the Brazilian startup that owns the Mercado Bitcoin cryptocurrency exchange.

As reported by the Estadão newspaper, the American cryptocurrency trading firm has been in talks with 2TM since last year, despite citing no sources, claims a deal is on track to be inked by the end of April.

Mercado Bitcoin has been on a massive growth trajectory with the exchange hitting a 3.2 million milestone in the past year. While the platform added as much as 1.1 million in 2021 alone and the platform’s transaction volume topped $7.1 billion. 

Latin America is growing to become a major region of interest amongst prominent trading platforms as there has been a steady growth of digital currency users in the region. Should the acquisition move be confirmed, it will lend credence to Coinbase’s expansion strategy as Mercado Bitcoin will be a very good pathway to make its presence felt in the Latin American world.

2TM is valued at $2.1 billion following $200 million it raised in a Series B funding round and $50 million in a second closing of the funding in last November. The startup also received a liquidity injection from Mercado Libre earlier in January alongside Paxos as reported by Blockchain.News. 

Earlier this year, the 2TM Group also acquired a controlling stake in Lisbon-based crypto exchange CriptoLoja, an acquisition that expanded its ecosystem remarkably. The proposed acquisition from Coinbase will also likely extend its influence to the Portuguese markets through CriptoLoja. 

Mergers and Acquisitions (M&A) is becoming a prominent event in the digital currency ecosystem and are even more common amongst trading platforms. Previously, Blockchain.News reported global digital assets platform, Amber Group, has taken up ownership of Japan-based cryptocurrency trading platform, DeCurret in a concluded transaction with no monetary terms declared back in February.

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