Nubank offers Bitcoin trading to its users
Nubank, Brazil’s largest digital bank, said Wednesday that users may now purchase, trade, and store bitcoin using the bank’s mobile application.
Through its parent company, Nu Holdings Inc., which is listed on the New York Stock Exchange, the fintech will also allocate 1% of its shares to bitcoin. According to Exame, Nubank’s action aims to “strengthen the company’s faith in bitcoin’s current and future potential to disrupt financial services.”
According to various sources, Paxos, a cryptocurrency infrastructure company, would supply the essential trading and custody services for Nubank’s offering. As a result, it looks that users who acquire BTC through the Brazilian digital bank’s app would be unable to withdraw BTC to a wallet they control.
The feature will be implemented gradually. The option is now in the testing phase, with just a small percentage of Nubank’s users having access to the bitcoin integration. The bank expects serving all customers within the following several months.
Nubank explained its decision to invest in the Bitcoin ecosystem in a statement, stating that Bitcoin has over 40% of the total market share of all cryptocurrencies and is considered the strongest cryptocurrency owing to its weight.
According to the company’s website, Nubank’s investing subsidiary, NuInvest, previously only enabled consumers to invest in crypto through exchange-traded funds.
“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,” Nubank CEO and co-founder David Vélez said in a statement.
According to Nubank’s annual report for 2021, the company has 53.9 million users in Brazil, Mexico, and Colombia. The bank made $1.7 billion in revenue last year.
Warren Buffet, chairman and CEO of Berkshire Hathaway, now has indirect bitcoin exposure because to Nubank’s treasury allocation. Buffet is a renowned investor and Bitcoin skeptic. According to CNBC, the holding firm put $500 million into Nubank in June 2021, bought 30 million shares for $250 million when it went public in December, and recently doubled down with a $1 billion investment in Brazilian fintech.
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