2TM partners with Giant Steps to launch quant crypto trading service

2TM Group, the holding company of Latin America’s largest crypto exchange, MercadoBitcoin.com, plans to launch a crypto asset manager focused on quantitative trading.

For the launch, 2TM is collaborating with Giant Steps, Brazil’s largest qualitative investment manager with approximately 7 billion Brazilian reais ($1.5 billion) in assets under management. The latter was one of the first Brazilian hedge fund managers to adopt the quant-trading philosophy and hopes to reach 10 billion reais in assets by the end of the year.

The Sao Paulo-based asset manager, which has 100,000 investors and 45 employees, would expand the product portfolio and retain a minority stake in the 2TM service, according to Brazilian financial media site InfoMoney.

Despite the “strong growth rates” of Brazil’s quantitative trading market, Giant Steps says the segment only accounts for around 2% of total fund assets in the country. Latin America’s largest quantitative asset manager signaled its interest in crypto when it invested last year in Polvo Technologies, which develops machine learning strategies to trade Bitcoin futures and currencies. digital assets.

Brazilians Didn’t Miss the Crypto Boom

Nasdaq-listed crypto exchange operator Coinbase is reportedly in talks to acquire Brazilian unicorn group 2TM.

The two companies did not share financial details of the acquisition, but 2TM was valued at around $2.2 billion in December after the last $50 million fundraising. The Softbank-backed Brazilian firm also declined to comment on the size of the deal, citing a confidentiality agreement.

Led by Daniel Cunha, 2TM is Latin America’s second crypto-focused unicorn after Bitso and its subsidiary Mercado Bitcoin has nearly 3.5 million customers. According to its own statistics, trading volume at the crypto exchange hit $7 billion last year, surpassing its first seven-year total. The Brazilian company raised $250 million in two funding rounds in 2021, led by Japan’s SoftBank Group Corp.

Some of 2TM’s investments include a stake in US$PRINTS tokens in leading NFT custody and collection group Fingerprints DAO, holding some 20,000 ETH of NFT. The crypto company, founded by Gustavo and Mauricio Chamati, was the first in the world to tokenize government debt assets in 2019.

Brazilians have not missed the cryptocurrency trend and the country has been a hive of activity related to crypto assets. In Latin America, the nation was the leader in cryptocurrency on both the regulatory side and the development side. As it stands, the country’s financial watchdog, the CVM, bars regulated investment funds from trading in the virtual asset class.

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