Nubank, Backed By Warren Buffett, Launches Crypto Trading – Holds Bitcoin On Balance Sheet

Nubank, backed by Warren Buffett, one of the largest digital banking platforms in the world, has launched cryptocurrency trading. Sstarting with bitcoin and ether, the bank explained that its 54 million customers can “buy, hold and sell cryptocurrency from the same app, without needing to open new accounts or to transfer money”.

Nubank now offers in-app crypto trading

Nubank, one of the world’s largest digital banking platforms, announced its entry into the crypto trading market on Wednesday. The bank serves approximately 54 million customers in Brazil, Mexico and Colombia.

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The company launched an exclusive in-app crypto trading experience in Brazil today, initially offering bitcoin and ethereum trading from BRL 1.00 (~USD 0.20).

The new service aims to allow “customers to buy, hold and sell cryptocurrencies from the same [Nubank] app, without the need to open new accounts or transfer money,” the bank explained.

Prior to this launch, Nubank clients could gain exposure to cryptocurrencies through exchange-traded funds (ETFs) and funds offered by Nuinvest, formerly known as Easynvest.

The bank noted that the new crypto-trading service “will be gradually available to customers in Brazil starting in May 2022, reaching all customers by the end of July 2022.”

The announcement adds that “Nubank will do frequent curation” in order to offer more cryptocurrencies to customers. Additionally, the bank will “provide educational resources to customers interested in digital currency transactions, to support informed investment decisions.”

Nubank’s partnership with Paxos

Nubank’s crypto trading is operated in partnership with Paxos, a regulated blockchain infrastructure provider that will act as a custodial provider and broker, according to the announcement.

Charles Cascarilla, co-founder and CEO of Paxos, commented: “Nubank’s decision to enter the crypto trading space represents a strategic move not only for the company, but for an acceleration in the adoption of cryptocurrency in the region.”

David Vélez, Founder and CEO of Nubank, said:

There is no doubt that crypto is a growing trend in Latin America, one that we are following closely and which we believe will have a transformational impact on the region.

Nu Holdings adds Bitcoin to the balance sheet

In addition to launching cryptocurrency trading, Nu Holdings, Nubank’s parent company, announced that it has allocated “~1% of its on-balance sheet liquidity to bitcoin.” The company said:

The transaction reinforces the company’s belief in the current and future potential of bitcoin in the region’s financial services landscape.

Warren Buffett’s Berkshire Hathaway is currently a shareholder in Nu Holdings. According to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Berkshire’s holdings as of December 31, 2021 included shares of Nu Holdings worth more than $1 billion. Berkshire Hathaway also invested $500 million in Nu Holdings in June last year, months before the company went public.

Buffett, however, recently said he wouldn’t invest in cryptocurrencies because they produce nothing. Meanwhile, Berkshire Vice Chairman Charlie Munger believes crypto is “dumb and evil.”

What do you think of Warren Buffett-backed Nubank, which offers crypto trading and holds bitcoin on its balance sheet? Let us know in the comments section below.

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Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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