Key Takeaways:
- Nubank, a Brazilian fintech startup, has signed an agreement to begin trading cryptocurrency with Paxos, a crypto corporation.
- Nubank announced Wednesday that users would be able to purchase and sell bitcoin (BTC) and ether (ETH) on its platform.
- According to David Vélez, CEO and founder of Nubank, the goal of this initiative is to create an experience that is simple and intuitive enough to broaden access to new segments while also being robust and powerful enough for the more crypto-savvy.
Nubank, a significant fintech company and one of the world’s largest digital banking systems, has entered the cryptocurrency trading sector. In line with its aim of expanding its product portfolio to meet the demands of all of its clients, the firm introduced an exclusive in-app crypto trading experience in Brazil today, initially offering Bitcoin and Ethereum trading for BRL $ 1.00 (the US $0.20).
Paxos Trust Company is a blockchain-focused financial institution and technology firm based in New York. A cryptocurrency brokerage service, asset tokenization services, and settlement services are among the company’s products. It combines the benefits of blockchain technology with the stability of fiat currencies as a regulated stablecoin collateralized by the US dollar.
Dennis Porter also shared the news with a tweet.
Users will be able to purchase and trade crypto with Brazilian reals, according to Paxos, but will not be able to withdraw or deposit crypto at first.
According to the company’s website, Nubank’s investing unit, NuInvest, previously only enabled users to invest in crypto through exchange-traded funds.
NuInvest only invests in cryptocurrencies through ETFs (index funds), which mirrors the performance of indices backed by these digital assets. Or in investment funds that put a portion of their money into financial assets that are issued and/or traded in other countries.
According to a statement released Wednesday, the bank will begin facilitating bitcoin and ether transactions in May and will roll out the new product to its whole 50 million customer base by the end of July.
Nubank, a Brazilian fintech startup, has signed an agreement to begin trading cryptocurrency with Paxos, a crypto corporation.
“Without a doubt, crypto is a developing trend in Latin America, one that we have been actively tracking and believe will have a transformative impact on the area. Customers either lack information to feel confident about entering this new market or are annoyed by complex encounters, therefore the trading experience is still quite narrow. Nubank’s goal is to empower our customers by giving them control over their finances. As a result, we designed an experience that was easy and straightforward enough to open up new segments while also being sturdy and powerful for the more crypto-savvy,” says David Vélez, Nubank’s CEO and founder.
Since December of last year, Nubank has been traded on the New York Stock Exchange (NYSE) and the B3 exchange in Brazil. The company’s stock was down around 11% in both markets at the time of publishing.
There is no denying that cryptocurrency is becoming more popular in Latin America. with its own version of a Bitcoin law, Brazil, Latin America’s largest country, is getting closer to regulating cryptocurrencies.
The Brazilian Senate enacted the country’s first cryptocurrency bill on April 26. This project establishes the definition of a virtual asset and lays the groundwork for a wider regulatory framework. It would also establish ground rules for everyday use and tougher sanctions for scams and frauds, which have grown in recent years in an uncontrolled environment.
Nubank is currently the most valued listed bank in Latin America, as per Reuters. According to CNBC, the neobank concluded its maiden day of trading on the NYSE with shares up over 15%. Forbes estimates that the corporation is worth $45 billion.
Nubank estimates that roughly 815,000 people invested in the company via Brazilian Depositary Receipts, which are supported by Warren Buffett’s Berkshire Hathaway and others (BDRs). Also, as part of its NuSócios campaign, nearly 7.5 million people claimed their free, little piece of Nubank.
