Nubank, the largest digital bank in Brazil and Latin America, announced that it has partnered with Paxos to allow the bank’s customers to buy, sell and store cryptocurrencies directly through Nubank.
In parallel with the launch of the new cryptocurrency trading service, Nubank announced that it will allocate approx. 1% of its net assets to Bitcoin (BTC) through the cashier of Nu Holdings, a company that manages Nubank Group.
“This measure strengthens the company’s conviction about Bitcoin’s current and future potential for disrupting financial services in the region,” said Nubank, as translated by Cointelegraph.
According to a statement from Nubank sent to Cointelegraph, Bitcoin and Ethereum (ETH) can be purchased for $ 0.2 (or 1 BRL) and will be available in May. The cryptocurrency investment service will be fully implemented by the end of June.
“There is no doubt that cryptocurrencies are a growing trend in Latin America,” said Nubank founder and CEO David Velez. “We have been following the market closely and we believe that there is a potential for change in the region.”
Nubank also revealed that the integration with cryptocurrencies aims to expand and improve access to this growing market, preventing complexity and friction for customers to buy, hold and sell digital currencies through the app without having to open new accounts or transfer cash.
The company confirmed plans to expand beyond BTC and ETH bids in the future, but did not elaborate on which assets will be included.
Through a set of APIs, Paxos will enable Nubank to offer customers cryptographic services, as Mercado Livre and PayPal also do in partnership with Paxos.
Nubank is said to have more than 50 million customers in Brazil alone. According to Paxos, its partnership with the digital bank is an important strategic step as South America continues to grow into a cryptocurrency.
Brazil is firmly betting on digital money!
The country is the latest to announce CBDC approval. The digital currency will be based on domestic fiat and would have a fixed supply that is somewhat similar to Bitcoin. image.twitter.com/nWu0RAfJyB
– Cointelegraph (@Cointelegraph) April 13, 2022
Nubank and Bitcoin
Although this is the first time that Nubank has offered customers to buy BTC and ETH directly, the bank is not new to digital assets. Through Nulinvest, a platform that Nubank acquired in 2020 when it was named Easynvest, the bank already enables customers to buy investment funds with risks in the digital asset market.
With the acquisition, Nubank also began offering QBTC11, a stock exchange fund that is 100% allocated to Bitcoin, managed by QR Asset Management and belongs to the QR Capital group.
At the same time, a listing earlier this year revealed that Warren Buffett’s Berkshire Hathaway had bought $ 1 billion in Nubank shares in the fourth quarter of 2021. That move is said to have given Oracle of Omaha an indirect risk in the digital asset market.
Indonesia and Brazil are world leaders in the share of cryptocurrency investors among the public, according to a new Gemini report. https://t.co/eBympWuxt4
– Cointelegraph (@Cointelegraph) April 4, 2022
Connected: Coinbase reportedly buys the $ 2.2 billion Brazilian unicorn behind Mercado Bitcoin
Nubank is not the only local financial institution that wants to offer cryptocurrency investment services. Another Brazilian bank that will also offer its clients Bitcoin investment services is BTG Practical. The bank’s president, Roberto Sallouti, recently announced that the bank will begin its own cryptocurrency exchange in about two months.
“We will have a trading platform for cryptocurrencies in up to two months [..] BTG’s proposal is to have a perfect investment platform for our customers, “he said.
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