Nubank is starting off its crypto trading services with just Bitcoin and Ethereum, but the list will be expanded to include other digital currencies soon.
Crypto Trading For Nubank Users
The Brazil-based digital services bank is finally embarking on providing crypto trading services across its customer base in the native market. Customers will be able to buy, sell, hold, and basically trade in the two premium cryptocurrencies, Bitcoin and Ethereum, on the Nubank platform. With the Brazilian Senate recently approving the Bitcoin Law and Rio De Janeiro pledging 1% of the Treasury for crypto investments, the country will witness many such initiatives to develop its crypto industry. To launch this initiative, Nubank has tied up with blockchain infrastructure provider Paxos, which offers services like cryptocurrency brokerage, asset tokenization, and settlement.
Low Investment Barrier To Encourage First-Timers
Customers of the digital bank can avail of the service and start dealing in these two cryptos from May. The service will be gradually rolled out and will be available to the entire customer base by the end of June. However, the most noteworthy feature of this offering is that it allows users to purchase crypto as low as BRL 1 (around $0.20). This feature will no doubt help out cautious, first-time investors who are turned off by the high investment barriers of other platforms.
Paxos’ Co-Founder and CEO, Charles Cascarilla, said,
“The Company’s reach and impact across the country’s different segments ensure that even more people will be able to dive into crypto than ever before. 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.”
Brazil’s Crypto Awakening
According to the ‘Into the Cryptoverse Report’ released by the crypto exchange KuCoin, around 34.5 million Brazilians, i.e., 26% of the population aged 18 to 60, are active crypto investors. Furthermore, growing inflation in the country has driven a large percentage (62%) of these investors to put their faith in crypto as the “future of finance.” Another key takeaway from the report is that the country's underbanked population, i.e., the young, rural, or low-income citizens, are driving the spread of crypto adoption in Brazil.
Nubank’s Founder and CEO, David Vélez has commented on the matter, in light of the latest offerings,
“There is no doubt that crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region. Yet the trading experience is still very niche as customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.