The largest digital bank platform in the world, Nubank, which is backed by Warren Buffett, has opened cryptocurrency trading. The bank started with bitcoin and ether and explained that customers of 54 million can now “buy, hold, and sell cryptocurrency all within the same app” without the need to open new accounts nor transfer money.
Nubank now offers in-app crypto trading
Nubank, one the largest digital banking platforms in the world, announced Wednesday that they are entering the crypto trading marketplace. The bank has 54 million customers in Brazil, Mexico, Colombia, and Colombia.
Details of the announcement:
Today, the company launched in Brazil an exclusive in app crypto trading experience. It offers bitcoin and ethereum trading starting from BRL $1.00 (U.S. $0.20).
The bank stated that customers will be able to use the new service to “buy, hold, and sell cryptocurrency all within the same [Nubank] App, without the need to open new accounts or transfer any money.”
Before this launch, Nubank clients had access to cryptocurrencies via exchange-traded funds, ETFs, and funds offered through Nuinvest (formerly Easynvest).
The bank stated that the new cryptocurrency trading service would be available to customers in Brazil from May 2022 and will reach all customers by July 2022.
In addition, Nubank announced that it will “do frequent curation” to provide more cryptocurrency to clients. The bank will also provide educational resources for customers who are interested in digital currency transactions to help them make informed investment decisions.
Paxos and Nubank Partner
According to the announcement, Nubank’s crypto trading will be operated in partnership by Paxos. Paxos is a regulated blockchain infrastructure provider, which will act as a broker and custody provider.
Charles Cascarilla is the co-founder and CEO at Paxos. He said: “Nubank’s decision to enter the crypto trading area represents a strategic step not only for the bank but also for an acceleration in the cryptocurrency adoption within the region.”
David Velez, founder of Nubank and CEO, stated:
It is clear that crypto is a rising trend in Latin America. We have been closely following it and believe that it will have a transformative impact on the region.
Nu Holdings adds Bitcoin to the Balance Sheet
Nu Holdings, Nubank’s parent company, also announced the launch of cryptocurrency trading.
This transaction confirms the company’s belief in bitcoin’s future and current potential in the region’s financial service landscape.
Nu Holdings is currently owned by Warren Buffett’s Berkshire Hathaway. According to the U.S Securities and Exchange Commission (SEC) 13F filing, Berkshire held Nu Holdings shares in its holdings as of December 31, 2021. Berkshire Hathaway also 500 million invested in Nu Holdings last June, months before the company went public.
However, Buffett recently stated that he won’t invest in cryptocurrency because they don’t produce anything. Charlie Munger, Berkshire Vice Chairman, believes crypto is “stupid” and “evil.”
