Warren Buffett-backed Nubank, one of the world’s largest digital banking platforms, has launched cryptocurrency trading. SStarting with Bitcoin and Ether, the bank explained that its 54 million customers can “buy, hold, and sell cryptocurrency, all from the same app, without opening new accounts or transferring funds.”
Nubank now offers in-app crypto trading
Nubank, one of the world’s largest digital banking platforms, announced on Wednesday that it is entering the crypto trading market. The bank serves around 54 million customers in Brazil, Mexico and Colombia.
The announcement details:
The company today launched an exclusive in-app crypto trading experience in Brazil, initially offering Bitcoin and Ethereum trading starting at BRL 1.00 (~$0.20).
The new service aims to “enable customers to buy, hold and sell cryptocurrencies all on the same basis [Nubank] app without having to open new accounts or transfer money,” the bank explained.
Prior to this launch, Nubank customers could invest in cryptocurrencies through exchange-traded funds (ETFs) and funds offered by Nuinvest, formerly known as Easyinvest.
The bank noted that the new crypto trading service “will be gradually available to customers in Brazil starting in May 2022 and will reach the entire customer base by the end of July 2022.”
The announcement adds that “Nubank will conduct frequent curation” to offer more cryptocurrencies to customers. In addition, the bank will provide “educational resources to support clients interested in digital currency transactions to support informed investment decisions.”
Nubank’s partnership with Paxos
Nubank’s crypto trading will be operated in partnership with Paxos, a regulated blockchain infrastructure provider that will act as custodian and broker, according to the announcement.
Charles Cascarilla, Co-Founder and CEO of Paxos, commented, “Nubank’s move into the crypto trading space represents a strategic move not only for the company, but also for accelerating cryptocurrency adoption in the region.”
David Vélez, Founder and CEO of Nubank said:
There is no doubt that crypto is a growing trend in Latin America, a trend that we have been following closely and that we believe will have a transformative impact on the region.
Nu Holdings adds bitcoin to balance sheet
Alongside the launch of cryptocurrency trading, Nu Bank’s parent company, Nu Holdings, announced that it has “allocated ~1% of its cash on the balance sheet to Bitcoin.” The company explained:
The transaction reinforces the Company’s belief in the current and future potential of Bitcoin in the region’s financial services landscape.
Warren Buffett’s Berkshire Hathaway is a current shareholder of Nu Holdings. As of December 31, 2021, Berkshire’s holdings included more than $1 billion in Nu Holdings stock, according to its most recent 13F filing with the SEC. Berkshire Hathaway invested $500 million in Nu Holdings last June, months before the company went public.
However, Buffett recently said that he won’t invest in cryptocurrencies because they don’t produce anything. Meanwhile, Berkshire Vice Chairman Charlie Munger believes crypto is “stupid and evil.”
What do you think of Warren Buffett-backed Nubank, which offers crypto trading and holds bitcoin on its balance sheet? Let us know in the comment section below.
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