Collaborating with Brazilian digital banking giant Paxos to provide crypto services

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

Nubank directly supports Bitcoin and Ether transactions.

in press release On Wednesday, May 11, 2022, Nubank revealed that customers can buy, sell and hold Bitcoin and Ether directly through their banking app, with crypto purchases starting at $0.20. (1BRL). According to the announcement, Nubank’s new service aims to provide users with a simple and seamless cryptocurrency experience.

Nubank co-founder and CEO David Vélez said:

“There is no doubt that cryptocurrencies are a growing trend in Latin America, which we have been following closely and believe will have a transformative impact on the region. However, the trading experience remains a very niche market because customers lack the information or are frustrated with complex experiences to gain confidence in entering this new market.”

Neobank in Brazil currently supports BTC and ETH, but plans to include more crypto assets in the future. After a gradual launch of cryptocurrency trading services from May 2022, by the end of July, we plan to expand to the entire customer base of digital banks of over 50 million people.

Partnership trading will see Paxos acting as a broker and custody provider. Charles Cascarilla, Co-Founder and CEO of Blockchain Infrastructure Platform, said:

“Nubank’s move to enter the cryptocurrency trading space represents a strategic move to accelerate cryptocurrency adoption not only by the company, but also in the region.”

According to the press release, Nubank’s parent company, Nu Holdings, has purchased private bitcoin equivalent to 1% of its balance sheet. According to the announcement, “This transaction strengthens the company’s confidence in Bitcoin’s current and future potential in the financial services landscape in the region.”

Brazil continues to embrace cryptocurrencies

Prior to the launch of the new service, Nubank users could only get cryptocurrency exposure through exchange-traded funds (ETFs) powered by NuInvest, Neobank’s investment arm.

In February, multinational conglomerate Berkshire Hathaway led by prominent Bitcoin critic and billionaire Warren Buffett bought $1 billion worth of Nubank stock.

In addition to Nubank, another Brazilian financial institution, BTG Pactual, has announced that it plans to launch a new platform where customers can access Bitcoin and Ethereum.

In early May, it was reported that exchange giant Coinbase had closed a deal to acquire 2TM, a major Brazilian cryptocurrency broker.

Featured image courtesy of Exame

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