Nubank backed by Warren Buffett, one of the world’s largest digital banking platforms, has launched cryptocurrency trading. sStarting with bitcoin and ether, the bank explained that its 54 million customers can “buy, hold and sell cryptocurrencies, all from the same app, without having to open new accounts or transfer funds.”
Nubank now offers in-app cryptocurrency trading
Nubank, one of the world’s largest digital banking platforms, announced on Wednesday that it is entering the cryptocurrency trading market. The bank serves about 54 million customers in Brazil, Mexico and Colombia.
Today in Brazil the company launched an exclusive in-app cryptocurrency trading experience, initially offering Bitcoin and Ethereum trading starting at R$1.00 (~$0.20).
The new service aims to enable “customers to buy, hold and sell cryptocurrencies in the same currency.” [Nubank] application, without the need to open new accounts or transfer funds,” the bank explained.
Prior to this launch, Nubank customers could benefit from cryptocurrency through exchange-traded funds (ETFs) and funds provided by Nuinvest, formerly known as Easynvest.
The bank noted that the new cryptocurrency trading service “will gradually be available to customers in Brazil starting in May 2022, reaching the entire customer base by the end of July 2022.”
The announcement adds that “Nubank will conduct frequent regulation” in order to offer more cryptocurrency to customers. Furthermore, the bank will provide “educational resources for clients interested in cryptocurrency transactions, to support informed investment decisions.”
Nubank Partnership with Paxos
Nubank’s cryptocurrency trading is operated in partnership with Paxos, a regulated blockchain infrastructure provider that acts as a custodian intermediary provider, according to the announcement.
Charles Cascarilla, Co-Founder and CEO of Paxos commented, “Nubank’s move into the crypto trading space is a strategic move not only for the company but to accelerate crypto adoption in the region.”
David Velez, founder and CEO of Nubank, opined:
There is no doubt that cryptocurrency is a growing trend in Latin America, a trend we have followed closely and believe will have a transformative impact on the region.
Nu Holdings Adds Bitcoin to the Balance Sheet
In addition to launching cryptocurrency trading, Nu Holdings, the parent company of Nubank, announced that it has set aside “about 1% of its cash balance sheet for bitcoin.” The company stated:
The transaction reinforces the company’s conviction in the current and future potential of Bitcoin in the financial services scene in the region.
Berkshire Hathaway of Warren Buffett is a current shareholder of Nu Holdings. According to the latest filing with the US Securities and Exchange Commission (SEC), Berkshire’s holdings as of December 31, 2021 included Nu Holdings shares worth more than $1 billion. Berkshire Hathaway also invested $500 million in Nu Holdings in June of last year, months before the company went public.
However, Buffett recently said that he will not invest in cryptocurrency because it does not produce anything. Meanwhile, Berkshire Vice Chairman Charlie Munger believes crypto is “stupid and evil.”
What do you think of Warren Buffett-backed Nubank that offers cryptocurrency trading and keeps Bitcoin on its balance sheet? Let us know in the comments section below.
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