Warren Buffett-backed Nubank, one of the world’s largest digital banking platforms, has launched cryptocurrency trading. Starting with bitcoin and ether, the bank explained that its 54 million customers can “buy, hold and sell cryptocurrency all from the same app, with no need to open new accounts or transfer money.”
Nubank Offers Crypto Trading in App
Nubank, one of the world’s largest digital banking platforms, announced Wednesday that it is entering the crypto trading market. It serves approximately 54 million clients in Brazil, Mexico and Colombia.
Here are the details of the announcement
Today, the company launches in Brazil an in-app cryptocurrency trading experience. It offers bitcoin and ethereum trading beginning at BRL 1.00 (U.S. $0.20).
The new service aims to enable “customers to buy, hold and sell cryptocurrency all from the same [Nubank] app, with no need to open new accounts or transfer money,” the bank explained.
Before this launch, Nubank clients had access to cryptocurrency via exchange-traded fund (ETFs), and Nuinvest funds, which were formerly called Easynvest.
The bank noted that the new crypto trading service “will be gradually available for customers in Brazil starting in May 2022, reaching the entire customer base by the end of July 2022.”
The announcement adds that “Nubank will do frequent curation” in order to offer more cryptocurrencies to clients. Furthermore, 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 crypto trading is operated in partnership with Paxos, a regulated blockchain infrastructure provider that will act as a custody provider and broker, according to the announcement.
Charles Cascarilla, co-founder and CEO of Paxos, commented: “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.”
David Vélez, founder and CEO of Nubank, opined:
Cryptocurrency is growing in Latin America. This trend is something we are closely following and will impact the region.
Nu Holdings adds Bitcoin to the Balance Sheet
In addition to launching cryptocurrency trading, Nu Holdings, Nubank’s parent company, announced that it has allocated “~1% of its balance sheet cash to bitcoin.” The company stated:
The transaction reinforces the company’s conviction 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. According to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Berkshire’s holdings as of Dec. 31, 2021, included Nu Holdings shares worth more than $1 billion. Berkshire Hathaway had also invested $500m in Nu Holdings during June 2017, months before the public company was listed.
Buffett said recently that he would not be investing in cryptos because they are not producing anything. Meanwhile, Berkshire Vice Chairman Charlie Munger believes that crypto is “stupid and evil.”
How do you feel about Warren Buffett’s Nubank offering cryptocurrency trading and holding Bitcoin on its balance sheets? Please leave your comments below.
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