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

Nubank supports direct trading of Bitcoin and Ether

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

Nubank co-founder and CEO David Velez said:

“There is no doubt that cryptocurrencies are a growing trend in Latin America, one that we have been closely following and believe will have a transformative impact on the region. However, the business experience remains very specific, as customers lack the information to feel confident entering this new market or are simply 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 phased rollout 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 agreement will also see Paxos act as a broker and escrow provider. Charles Cascarilla, co-founder and CEO of the blockchain infrastructure platform, said:

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

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

Brazil continues to embrace cryptocurrencies

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

In February, the 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, announced plans to launch a new platform that would allow customers to access bitcoin and ether.

In early May, it was reported that a deal to acquire Brazil’s leading cryptocurrency broker 2TM by exchange giant Coinbase was finalized.

Featured image courtesy of Exame

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