Nubank, Brazil’s largest digital bank by market value, has demonstrated its confidence in the cryptocurrency sector. Nubank has started offering bitcoin and ether for purchase or sale on their platform. To strengthen its position in the crypto community, Nu Holdings has decided to invest about 1 percent of the company’s cash balance in BTC. Nu Holdings is Nubank’s parent company, based in São Paulo, Brazil’s thriving financial hub.
This is the first time Nubank has offered crypto trading as part of their portfolio of services. Previously, the lender allowed its clients to invest in crypto only through exchange-traded funds available through its investment unit, NuInvest.
Founded in 2013, Nubank aims to make investors safe and aware about their crypto investments while allowing them to trade BTC and ETH for starters.
“There is no doubt that crypto is a growing trend in Latin America, a trend that we have been closely monitoring and that we believe will have a transformative impact on the region. Yet the trading experience is still niche as customers either lack the information to feel confident about entering this new market or are simply frustrated by complex experiences,” said David Vélez, CEO and co-founder of Nubank, in a statement .
Brazilians can already trade at Nubank for as little as 1 BRL (about 15 rupees).
The bank claims to offer the service with complete security as the entire transaction is done within the Nubank app.
Blockchain infrastructure provider Paxos has been brought on board by Nubank to facilitate crypto-related operations.
The platform intends to update its crypto offerings with more altcoins.
Nubank’s new crypto trading feature is expected to launch in July 2022.
Brazil, in general, has made efforts to shape its crypto industry.
In April, the Brazilian Senate passed the country’s first law overseeing the cryptocurrency sector.
As part of its crypto laws, Brazil attaches great importance to establishing relevant fines and penalties for those who misuse cryptocurrencies for illegal activities such as money laundering, fraud and other white-collar crimes.
According to blockchain research firm Triple-A, around 10 million Brazilians owned cryptocurrencies in 2021.
https://gadgets360.com/cryptocurrency/news/brazil-nubank-digital-bank-crypto-trading-allocates-cash-holdings-bitcoin-btc-2969129 Crypto trading reaches Brazil’s Nubank Digital Bank, 1 percent of the bank’s cash balances are allocated to BTC