Brazil-based digital bank, Nubank has launched cryptocurrency services in its native market. It is now offering customers to buy, sell and hold two cryptocurrencies : Bitcoin and Ethereum.
Announced on Wednesday, the services have been launched in partnership with blockchain infrastructure provider, Paxos. The digital bank is going to start rolling out the crypto services gradually to its customers in May and cover its entire customer base by the end of June.
“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,” said Nubank’s Founder and CEO, David Vélez.
Low Investment Barrier
Additionally, Nubank is keeping the investment barrier on the lower side. It will allow users to purchase crypto as low as BRL 1 (around $0.20). Moreover, the company is exploring the possibilities to expand its offerings beyond the top to digital currencies, promising that it “will do frequent curation to add more in the future.”
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.”
Nubank’s decision came days after the central bank of Argentina propagated its decision of prohibiting regulated banks from offering cryptocurrency services.
Further, Nubank’s parent company decided to allocate 1 percent of its cash reserves for the purchase of Bitcoins, following in the footsteps of American companies like MicroStrategy and Tesla.
