Warren Buffett-backed Nubank launches crypto Trading, adds buying and selling Bitcoin to its app

Nubank, one of the world’s largest digital banking platforms and backed by Warren Buffett, has introduced 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, one of the world’s leading digital banking systems, announced its entry into the cryptocurrency trading sector on Wednesday. The bank has around 54 million customers in Brazil, Mexico, and Colombia.

The announcement details:

The company launched today in Brazil an exclusive in-app crypto trading experience, offering initially bitcoin and ethereum trading starting at BRL $1.00 (~U.S. $0.20).

According to the bank, the new service will allow “customers to buy, hold, and sell cryptocurrency all from the same [Nubank] app, with no need to open new accounts or transfer money.”

Prior to this announcement, Nubank customers could get exposure to cryptocurrencies through exchange-traded funds (ETFs) and funds offered by Nuinvest, formerly Easynvest.

The fintech will also devote 1% of its shares to bitcoin via its parent company, Nu Holdings Inc., which is traded on the New York Stock Exchange (NYSE). According to Exame, Nubank’s action aims to “strengthen the company’s conviction in the current and future potential of bitcoin in disrupting financial services.”

According to various sources, cryptocurrency infrastructure provider Paxos would supply the essential trading and custody services for Nubank’s offering. As a result, it looks that consumers who use the Brazilian digital bank’s app to acquire bitcoin would be unable to withdraw Bitcoin (BTC) to a wallet controlled by them.

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.”

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 also invested $500 million in Nu Holdings in June last year, months before the company went public.

Warren Buffett, however, recently said that he will not invest in cryptocurrencies because they do not produce anything. Meanwhile, Berkshire Vice Chairman Charlie Munger believes that crypto is “stupid and evil.”

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.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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