Warren Buffet-backed Nubank, which is among the largest digital banking platforms, has started crypto trading. Commencing with Ether and Bitcoin, the bank announced that its 54 million customers are now free to purchase and sell cryptos without having to transfer money or open new accounts.
In-App Trading Now Allowed at Nubank
Nubank, one of the largest digital banking platforms, has said it is venturing into the world of crypto trading. The bank’s main operations are in Columbia, Mexico, and Brazil, where it serves about 54 million clients.
“The company launched today in Brazil an exclusive in-app crypto trading experience offering … Bitcoin and Ethereum trading …” read a statement from the bank.
The bank added that the new service is targeted at allowing customers to buy, hold, and sell their digital assets directly from the app without having to open new accounts or transfer money.
Before the launch, customers of the bank were only provided exposure to cryptos through exchange-traded funds from Nuivent, formerly Eastnvest.
The bank pointed out that the new service would be launched gradually to clients in Brazil from May 2022 and then expanded to reach all clients by the close of the year. Furthermore, it will do regular curation along the way to add more digital coins. Educational resources will also be made available to help customers understand what digital assets are and how they work.
Nubank Partners with Paxos, Adds BTC to Its Balance Sheet
Crypto trading at Nubank is run in partnership with Paxos, a licensed blockchain services provider that will act as the crypto custody provider and a broker.
According to Charles Cascarilla, the CEO of Paxos, the move by Nubank to enter crypto trading is a strategic step for the company and crucial for accelerating the adoption of cryptos in the region.
Apart from starting crypto trading, Nu Holding, the parent company for Nubank, also announced that it is adding about 1% of its balance sheet cash to Bitcoin. This shows the company’s conviction about the current and future potential of cryptocurrencies, especially Bitcoin, in the region.
One of the current shareholders of Nu Holdings is Warren Buffet’s Berkshire Hathaway. In the latest 13F filing with the United States Securities and Exchange Commission, Nu Holding is worth over USD1 billion. In June 2021, Berkshire Hathaway invested USD500 million in Nu Holdings.
Recently, Warren Buffet indicated that he would not invest in digital currencies because they are not worth anything. Berkshire Vice Chairman, Charlie Munger, is also very negative, arguing that cryptocurrencies are “stupid and evil.”