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 its platform.
Along with the launch of new cryptocurrency transaction services, Nubank announced that it will allocate approximately 1% of its net assets to Bitcoin (BTC) through the Nu Holdings box, company that controls the Nubank Group.
“This move reinforces the company’s belief in the current and future potential of Bitcoin in disrupting financial services in the region,” Nubank said, according to a Cointelegraph translation.
According to a Nubank statement sent to Cointelegraph, The purchase of Bitcoin and Ethereum (ETH) can be made from USD 0.2 (or 1 BRL) and will be available in mid-May. The crypto investment service will be fully implemented by the end of June.
“There is no doubt that cryptocurrencies are a growing trend in Latin America,” explained the founder and CEO of Nubank, David Vélez. “We have been following the market closely and we believe there is potential for transformation in the region.”
Nubank also reported that the integration with cryptocurrencies aims to expand and improve access to this growing market, removing complexity and friction so that customers can buy, hold and sell digital currencies through the app without opening new accounts or transfer cash.
The company has confirmed its plans to expand its offering beyond BTC and ETH in the future, but has not detailed which assets will be included.
Through a set of APIs, Paxos will enable Nubank to offer cryptocurrency-enabled services to customers, 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 represents an important strategic move as it Latin America continues to grow to become a cryptocurrency hub.
Brazil firmly bets on digital money!
The country is the latest to announce CBDC adoption. The sovereign national digital currency will be based on the national fiat and would have a fixed supply quite similar to Bitcoin. pic.twitter.com/nWu0RAfJyB
— Cointelegraph (@Cointelegraph) April 13, 2022
Nubank and Bitcoin
Although it is the first time Nubank has offered its customers the ability 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 called Easynvest, the bank already allows clients to buy investment funds with exposure to the digital asset market.
With the acquisition, Nubank also started offering QBTC11, an exchange-traded fund that is 100% allocated to Bitcoin, managed by QR Asset Management and belonging to the QR Capital group.
Meanwhile, a securities filing earlier this year revealed that Warren Buffett’s Berkshire Hathaway had bought $1 billion worth of Nubank stock in the fourth quarter of 2021. Se says the move has given the Oracle of Omaha indirect exposure to the digital asset market.
Indonesia and Brazil are leading the world in terms of the share of cryptocurrency investors among the general population, according to a new report by Gemini. https://t.co/eBympWuxt4
— Cointelegraph (@Cointelegraph) April 4, 2022
Nubank is not the only local financial institution looking to offer cryptocurrency investment services. Another Brazilian bank that will also offer Bitcoin investment services to its clients is BTG Practice. The bank’s president, Roberto Sallouti, recently announced that the bank will launch its own cryptocurrency exchanges in about two months.
“We will have our cryptocurrency exchange platform in a maximum of two months […] BTG’s proposal is to have a complete investment platform for our clients,” revealed.
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