Brazil's largest private bank, Itaú Unibanco, has made its foray into the cryptocurrency space. The lender is offering a cryptocurrency trading service, initially dealing in Bitcoin and Ether, according to a report by Reuters. Itaú Unibanco’s expansion into digital assets is based on the progress of crypto regulations in the Latin American country.

Its entry into the Brazilian crypto market positions it directly in competition with local players, such as Mynt and the global giant Binance. What sets Itaú Unibanco apart from its counterparts is its dual role as a trading platform and custodian for digital assets.

By offering custodial services for crypto users' assets, Itaú Unibanco aims to establish its presence in Brazil's fast-growing digital space. While the initial focus will be on Bitcoin and Ether, the bank plans to diversify its crypto portfolio.

Brazil's Evolving Crypto Landscape

Brazil's crypto landscape is poised for a significant transformation following the Senate's approval of legislation proposing an income tax of 15% on offshore crypto gains exceeding $1,200. This proposed rule is pending the final endorsement from the country's president and could be implemented on January 1.

Brazil's rising interest in digital assets has attracted attention from global exchanges. Binance introduced Binance Pay in the country in August to offer contactless crypto payment services in partnership with local entities like Weo Games.

Global Interest Spurs Crypto Innovation in Brazil

In June, Mercado Bitcoin, Brazil's largest cryptocurrency exchange, attained a payment institution license from the country's central bank. This achievement strengthened its position and paved the way for its expansion in the fintech space. This pivotal license enables Mercado Bitcoin to offer a range of fintech services encompassing digital fixed-income investments, staking, and various financial transactions based on crypto assets.

Besides Mercado Bitcoin, other players holding the Brazilian payments license include Crypto.com and Bitso. Coinbase has expanded its Brazilian operations, fostering partnerships to facilitate local currency deposits and withdrawals.

Additionally, Brazil's digital banking giant, Nubank, delved into the cryptocurrency sphere in 2022. The company introduced its services, allowing customers to purchase, sell, and hold Bitcoin and Ethereum. Nubank pledged to expand its offerings beyond Bitcoin and Ethereum.