Binance Explores Acquisition of Brazilian Securities Brokerage Firm – Binance is concentrating its efforts towards Latin America, particularly Brazil, as it aims to strengthen its position in the region.
The exchange announced it has signed a memorandum of agreement with Sim;paul Investimentos, a Brazilian brokerage firm, with said goal of acquiring the company after clearing the appropriate barriers and receiving regulatory approval, including the Bank of Brazil.
According to the press release, Binance’s move is targeted at growing the blockchain and cryptocurrency ecosystem in Brazil. Changpeng Zhao, Binance’s CEO, stated on the upcoming purchase:
“Crypto can modify and facilitate people’s lives in a rapidly developing market like Brazil, and we believe Binance has a lot to contribute – in full conjunction with local authorities – to the development of the ecosystem and community in Brazil.”
With the support of partnerships and wealth managers, Sim;paul Investimentos attempted to increase the value of its investments last year. The company, on the other hand, sold its customer portfolio to Guide Investimentos in January.
In the same month, Sim;paul Investimentos sold its technological team to Warren, another brokerage firm in the country.
Binance’s expansion strategy was announced earlier this month, and this latest move confirms it. Zhao stated in an interview with the Financial Times that traditional businesses and sectors will be part of the company’s future growth strategy.
According to Zhao:
“We plan to invest in one or two targets in each economic sector in order to bring them into crypto.”
Binance is a cryptocurrency exchange that invests in a number of businesses, including media and publishing.
The exchange made a $200 million investment in Forbes, a global media organization, on February 10 as part of its Web3 strategy, with the purpose of extending the company’s digital capabilities.