https://ift.tt/3tntAok Crypto Giant 2TM Acquires Portuguese Exchange (Report)

2TM Group, the parent company of Brazil’s largest cryptocurrency exchange Mercado Bitcoin, reportedly acquired a controlling stake in Portuguese-based digital asset trading venue CriptoLoja. Last year, the latter became the first platform in Portugal with an official license as a “virtual asset service provider.”

Pushing into Europe

According to a January 12 report by Reuters, the Brazilian organization, valued at approximately $2.2 billion, declined to disclose the terms of the deal. It added that the transaction will become official once Banco de Portugal (the country’s central bank) greenlights it. Roberto Dagnoni – Chief Executive Officer at 2TM – commented:

“Portugal is a strategic market for us because it requires a specific license. It is becoming an important hub for crypto in Europe and opens a gateway into the larger European market.”

Initially, 2TM will start its European expansion with an over-the-counter (OTC) operation, while it plans to introduce the Mercado Bitcoin platform to European retail and institutional investors later on.

It is worth noting that the aforementioned venue is the largest in Brazil by market valuation. Last year, it reached more than 3 million customers and traded over $6 billion.

Despite the transition, Luís Gomes and Pedro Borges – CriptoLoja’s Founders – will remain Co-Heads of the business. They will also lead 2TM’s future initiatives on the Old Continent.

Apart from Europe, the Brazilian company is looking to reach other areas around the globe, 2TM’s Executive Director Daniel Carneiro da Cunha revealed:

“We will be looking at other jurisdictions as well to set up proprietary operations and through that be able to gain exposure to regulatory and existing licenses.”

2TM’s Previous Efforts

At the end of last year, the holding company of the exchange raised $50 million from investors. It vowed to use the proceeds to increase its product offering and expand its services to other Latin American markets, including Chile, Argentina, Mexico, and Colombia.

The funding round received support from notable investors such as US private equity firm 10T Holdings, San Francisco-based venture capital fund Tribe Capital, Endeavor Brazil, and more.

Prior to this, in July 2021, 2TM’s Mercado Bitcoin received a $200 million investment from the Japanese multinational conglomerate holding company – SoftBank Group. Brazil’s leading digital asset exchange revealed it will utilize the funds into expanding its offerings around the globe, scale its operations, and invest in necessary infrastructure to meet the rising demand for crypto services.