One of the largest fintech banks in Latin America, Nubank has entered the crypto trading market in collaboration with Paxos.
The company has launched an in-app trading experience that will allow its users to trade Bitcoin and Ethereum.
The company will roll out the product in May and plans to reach its 50 million strong customer base in Brazil by the end of July 2022.
“At Nubank, we aim to empower our customers by putting them in control of their money. Therefore, we built an experience that was simple and intuitive enough to broaden access to new segments while being robust and powerful for the more crypto-savvy,” said David Vélez, the CEO and founder of Nubank.
This new product of Nubank will allow customers to buy, hold and sell crypto from the same app. Paxos will act as custody provider and broker for this product. Paxos is a leader in regulated blockchain infrastructure.
“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,” stated Charles Cascarilla, the co-founder & CEO of Paxos.
The company will expand to other cryptocurrencies with “frequent curation” in the future. The bank will also provide additional educational resources to users interested in digital currency, so they can make informed decisions.
Prior to the launch of this product, Nubank customers could invest in crypto through ETFs and funds offered by the digital bank.
Additionally, Nu Holdings, the bank’s parent company, has allocated roughly 1% of their balance sheet’s cash to Bitcoin. This move is to reaffirm the company’s belief in the “current and future potential” of Bitcoin.
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Latin America has been one of the fastest growing regions in terms of crypto adoption. Brazil alone accounts for more than a quarter of the $500 billion crypto industry of Latin America.
To cater to the needs and safety of this growing industry, Brazil has recently passed a bill that provides a regulatory framework for the legalization of cryptocurrency in the country.
