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Warren Buffett-backed Nubank, one of the world’s largest digital banking platforms, launched cryptocurrency trading. S starting with bitcoin and ether, the bank explained that its 54 million customers can “buy, hold and sell cryptocurrency from one app, without having to open new accounts or transfer money.”
Nubank now offers in-app cryptocurrency trading
Nubank, one of the world’s largest digital banking platforms, announced Wednesday that it is entering the cryptocurrency trading market. The bank serves about 54 million customers in Brazil, Mexico and Colombia.
Read more in the announcement:
The company launched an exclusive in-app cryptocurrency trading experience in Brazil today, offering initially bitcoin and etherium trading from 1.00 BRL (~$0.20).
The goal of the new service is to allow “customers to buy, hold and sell cryptocurrency from a single [Nubank] app, without having to open new accounts or transfer money,” the bank explained.
Prior to this launch, Nubank customers could access cryptocurrencies through exchange-traded funds (ETFs) and funds offered by Nuinvest, formerly known as Easynvest.
The bank noted that the new cryptocurrency trading service “will be gradually available to customers in Brazil starting in May 2022 and will reach its entire customer base by the end of July 2022.”
The announcement adds that “Nubank will curate frequently” to offer more cryptocurrencies to customers. In addition, the bank will “provide educational resources to customers interested in digital currency transactions to support informed investment decisions.”
Nubank’s partnership with Paxos
Nubank’s cryptocurrency trading is in partnership with Paxos, a regulated blockchain infrastructure provider, which will serve as a custodial provider and broker, it said.
Charles Cascarilla, co-founder and CEO of Paxos, commented, “Nubank’s entry into the cryptocurrency trading market represents a strategic move not only for the company, but also to accelerate cryptocurrency adoption in the region.”
David Velez, founder and CEO of Nubank, opined:
There is no doubt that cryptocurrencies are a growing trend in Latin America that we are following closely and believe will have a transformative impact on the region.
Nu Holdings adds bitcoin to the balance sheet
In addition to launching cryptocurrency trading, Nu Holdings, the parent company of Nubank, announced that it has allocated “~1% of its balance sheet to bitcoin.” The company stated:
The deal reinforces the company’s belief in bitcoin’s current and future potential in the region’s financial services industry.
Warren Buffett’s Berkshire Hathaway is a current shareholder of Nu Holdings. According to its most recent 13F filing with the SEC, Berkshire owned more than $1 billion worth of Nu Holdings stock as of December 31, 2021. Berkshire Hathaway also invested $500 million in Nu Holdings last June, a few months before the company went public.
Buffett, however, recently said he would not invest in cryptocurrencies because they produce nothing. Meanwhile, Berkshire vice chairman Charlie Munger believes cryptocurrencies are “stupid and evil.”
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