Nubank introduces crypto services to over 50M Brazilians, plans expansion into Latin America

• Nubank has collaborated with Paxos, a blockchain infrastructure provider, to allow secure and seamless transactions. 
• The new trading feature is expected to kickstart this May.

Nubank, Brazil’s largest digital bank by market value, announced on Wednesday that it would start offering crypto trading services. According to a blog article by Paxos, Nubank users will be able to access crypto buying, holding, and selling capabilities.

The move stamps the company’s authority in digital banking, especially in the South American block. Besides being a publicly-traded company, the neobank is backed by Warren Buffett’s Berkshire Hathaway.

Notably, Buffett’s Berkshire Hathaway bought Nubank stock worth $1 billion in February. 

David Vélez, CEO and co-founder of Nubank said in a statement,

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.

Notably, Paxos is a blockchain infrastructure provider that enables secure and seamless transactions. Worth noting, that Paxos is the blockchain infrastructure provider for PayPal, Interactive Brokers, Mercado Libre, and Mastercard.

Nubank’s entry into the crypto market is strategic and it will promote further adoption within the region. Customers using Nubank’s platform will be able to trade Bitcoin and Ethereum this May.

Nubank and the crypto market

Nubank is a major player in the Brazilian market where it is touted to have over 50 million users. In a statement, Paxos lauded the move by Nubank.

We’re thrilled that another 50 million Brazilians will have seamless access to Bitcoin and Ethereum through the Nubank platform,

Although the crypto market is on a downward trend, institutional investors have shown great interest. Moreover, institutional investors have been at the forefront of crypto adoption for the past two years. Paxos noted;

We are fueling the adoption of crypto by working with trusted brands and platforms upon which consumers already rely. Today, more people have access to a fast, safe, and transparent banking system that was previously out of reach. We are proud to bring hundreds of millions of people closer to a more inclusive financial system and we are proud to partner with Nubank to make it possible,

Although Nubank did not have crypto trading, it has always had crypto-friendly practices. The company has offered crypto-related services but now extends powered by Paxos. 

Side notes 

Nubank joins other institutional investors from Brazil seeking to tap the growing crypto enthusiasts. Worth noting, that the South American cross-border market has attracted a huge number of fintech companies including Ripple.

Moreover, the South American block was the first to have one of its members, El Salvador, adopt Bitcoin as legal tender. As a result, Brazilian lawmakers have been keen to regulate the crypto industry.