Nubank, one of the world’s largest digital banking platforms backed by Warren Buffett, has launched cryptocurrency trading. Starting with bitcoin and ethereum, the bank explained that its 54 million customers can “buy, hold and sell cryptocurrencies through the same app, without the need to open new accounts or transfer money.”
Nubank now offers in-app crypto transactions
Nubank, one of the world’s largest digital banking platforms, announced Wednesday that it is entering the cryptocurrency exchange market. The bank serves approximately 54 million customers in Brazil, Mexico and Colombia.
The company today launched an exclusive in-app crypto trading experience in Brazil, initially offering Bitcoin and Ethereum transactions starting at 1.00 BRL (~$0.20).
The new service aims to enable “customers to buy, hold and sell cryptocurrencies from the same place” [Nubank] app, no need to open new accounts or transfer money,” the bank explained.
Prior to this launch, Nubank clients could gain exposure to cryptocurrencies through exchange-traded funds (ETFs) and funds offered by Nuinvest (formerly Easynvest).
The bank noted that the new cryptocurrency trading service “will be gradually available to customers in Brazil starting in May 2022, covering the entire customer base by the end of July 2022.”
The announcement added that “Nubank will undergo frequent administration” in order to provide customers with more cryptocurrencies. Additionally, the bank will “provide educational resources for clients interested in digital currency trading to support informed investment decisions.”
Partnership between Nubank and Paxos
Nubank’s crypto exchange operates in partnership with Paxos, a regulated blockchain infrastructure provider that will act as an escrow provider and broker, the announcement said.
Charles Cascarilla, co-founder and CEO of Paxos, commented: “Nubank’s move into crypto trading represents not only a strategic move for the company, but a strategic move to accelerate cryptocurrency adoption in the region.”
According to David Vélez, founder and CEO of Nubank:
There is no doubt that crypto is a growing trend in Latin America that we have been watching closely and believe it will have a transformative impact on the region.
Nu Holdings Adds Bitcoin to Balance Sheet
In addition to launching cryptocurrency trading, Nubank’s parent company, Nu Holdings, announced that it had allocated “approximately 1% of its balance sheet cash to Bitcoin.” The company stated:
The transaction reinforces the firm’s belief in the current and future potential of Bitcoin in the region’s financial services sector.
Warren Buffett’s Berkshire Hathaway is a current shareholder in Nu Holdings. Berkshire Hathaway’s holdings included more than $1 billion worth of Nu Holdings stock as of December 31, 2021, according to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). Berkshire Hathaway also invested $500 million in Nu Holdings last June, months before the company went public.
However, Buffett recently stated that he would not invest in cryptocurrencies because they do not generate anything. Meanwhile, Berkshire Vice Chairman Charlie Munger sees encryption as “foolish and evil.”
What do you think of Warren Buffett-backed Nubank offering crypto trading and holding Bitcoin on its balance sheet? Let us know in the comments section below.
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