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Nubank, one of the largest digital banks in Latin America, has announced a partnership deal with Paxos, a blockchain infrastructure platform, to offer cryptocurrency trading services. These crypto services will be enabled via Nubank’s parent company.
Nubank partners with Paxos for crypto trading
Nubank issued a press release on May 11 saying that its clients can now trade and hold Bitcoin (BTC) and Ether (ETH) directly through its banking app. The bank said that this new service seeks to allow clients to access an easy and seamless experience when investing in cryptocurrencies.
The cryptocurrency purchases made via the banking app have to be worth over $0.20. While the bank is initially starting with Bitcoin and Ether, it plans to add more cryptocurrencies in the future. It plans to roll out this service to its entire digital customer base by July.
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“There is no doubt that crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region. Yet the trading experience is still very niche as customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences,” said David Velez, the co-founder and CEO of Nubank.
Paxos will be the brokerage provider and custodian for Nubank’s digital asset services. The CEO of Paxos, Charles Cascarilla, said that Nubank’s decision to venture into crypto was a strategic move by the company to boost cryptocurrency adoption in the region.
The press release also said that Nu Holdings, the parent company for Nubank, has purchased Bitcoin worth 1% of its balance sheet. Nu Holdings said that the purchase “reinforces the company’s conviction in the current and future potential of Bitcoin in the region’s financial services landscape.”
Crypto adoption in Brazil
Brazil has transformed to be a major hub for cryptocurrency activities. Nu Holdings has been at the forefront of making crypto services available. Before this announcement, NuInvest, the investment arm for the neobank, offered exchange-traded funds (ETFs) that give users exposure to cryptocurrency prices.
Besides Nubank, the other institution offering crypto-related services in Brazil is BTG Pactual. The company announced it would create a new platform that allows its customers to access Bitcoin and Ether trading.
Earlier this month, 2TM, a leading cryptocurrency exchange in Brazil, announced it had ended acquisition talks with Coinbase. Coinbase was set to acquire 2TM, but the deal ended under unclear circumstances.
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