Brazilian Bank Itau Unibanco to Offer Cryptocurrency Custody Services in 2023 – Itau Unibanco, one of the largest private banks in Brazil and Latam, has chosen to enter the cryptocurrency-related service sector. The business declared on November 17, 2022 that it will start custody services for cryptocurrencies in 2023. Itau Digital Assets, the company’s crypto-focused business, will be in charge of this solution’s underlying technology.
For Itau Unibanco, custody services are a crucial component of the security framework that third-party organizations can provide to their clients. On this, Itau Unibanco’s product manager Eric Alftafim told O Globo: “Custody is a fundamental element in this context, because, especially in a new market like crypto assets, it brings security to investors. We will safeguard customer assets in a reliable environment.”
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The custody service for cryptocurrencies will be launched in two phases. The initial phase will allow bank clients to contract these services. In the second phase, similar services will be extended to third parties, including other businesses and institutions. It is anticipated that Itau Unibanco will launch its custody solution in Q2 of 2023. However, the company did not disclose which assets its solution supported.
Although Itau Unibanco is one of the first banks to announce this type of service, it is not the first bank in Brazil to do so. In August, BTG Pactual, another Brazilian institution, unveiled its cryptocurrency custody services in conjunction with the opening of its own cryptocurrency exchange, mint.
It is not the first time Itau Unibanco has dabbled with cryptocurrencies. The company said on July 14 that it may launch cryptocurrency trading for its customers. Similarly, the bank operates a tokenization unit that enables customers to issue tokens representing real-world assets on the bank’s exchange.
Itau Unibanco is also participating in this year’s LIFT Lab, where a number of institutions present their innovative financial ideas. The startup was chosen to provide a solution for a stablecoin linked to the Brazilian real, which may facilitate the rapid exchange of tokens representing various fiat currencies in a decentralized financial environment.
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