Brazilian Digital Banking Giant Partners With Paxos to Offer Crypto Services

Brazilian Digital Banking Giant Partners With Paxos to Offer Crypto Services

São Paulo-based Nubank, Latin America’s largest digital bank, has signed a partnership deal with blockchain infrastructure platform Paxos to support cryptocurrency trading services within its banking app.

Nubank Supports Direct Bitcoin and Ether Trading

In a press release on Wednesday (May 11, 2022), Nubank said its customers will be able to buy, sell, and hold bitcoin and ether directly via the banking app, with crypto purchases starting from $0.20. (1 BRL). According to the announcement, Nubank’s new service seeks to offer a simple and seamless cryptocurrency experience for its users.

The co-founder and CEO of Nubank, David Vélez, said:

“There is no doubt that crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region. Yet the trading experience is still very niche as customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences.”

While the Brazilian neobank currently supports BTC and ETH, there are plans to include more crypto assets in the future. There will be a gradual launch of the cryptocurrency trading service starting in May 2022 before expanding to the digital bank’s entire customer base of over 50 million by the end of July.

The partnership deal will also see Paxos act as a broker and custody provider. Charles Cascarilla, the co-founder and CEO of the blockchain infrastructure platform, said:

“Nubank’s move to enter the crypto trading space represents a strategic move not only for the company but for an acceleration of the cryptocurrency adoption in the region.”

The press release also revealed that Nubank’s parent company Nu Holdings bought an undisclosed number of bitcoin equivalent to 1% of its balance sheet. According to the announcement, “the transaction reinforces the company’s conviction in the current and future potential of Bitcoin in the region’s financial services landscape.”

Brazil Continues to Embrace Crypto

Before the launch of the new service, Nubank users could only gain cryptocurrency exposure through exchange-traded funds (ETFs) offered by the neobank’s investment arm, NuInvest.

Back in February, multinational conglomerate Berkshire Hathaway led by prominent bitcoin critic and billionaire Warren Buffett bought $1 billion worth of Nubank’s stock.

Apart from Nubank, another Brazilian financial institution BTG Pactual announced plans to launch a new platform that allowed customers access to bitcoin and ether.

Earlier in May, a deal to acquire Brazil’s major crypto brokerage 2TM by the exchange giant Coinbase reportedly ended.

Featured Image Courtesy of Exame

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