Warren Buffett-Backed Nubank Launches Crypto Trading — Nubank, one of the world’s largest digital banking platforms and supported by Warren Buffett, has introduced cryptocurrency trading.
The bank added that its 54 million members may “purchase, hold, and sell cryptocurrencies all from the same app, with no need to register new accounts or transfer money,” starting with bitcoin and ether.
Nubank, one of the largest digital banking platforms in the world, announced its entry into the crypto trading sector on Wednesday. In Brazil, Mexico, and Colombia, the bank serves around 54 million people.
The announcement details:
“The company introduced an exclusive in-app crypto trading experience in Brazil today, starting with BRL $1.00 (US $0.20) for bitcoin and ethereum trading.”
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Customers will be able to “purchase, hold, and trade cryptocurrencies all from the same Nubank app, without having to register additional accounts or transfer money,” according to the bank.
Nubank customers could previously invest in cryptocurrencies using exchange-traded funds (ETFs) as well as funds issued by Nuinvest, formerly known as Easynvest.
According to the bank, the new crypto trading service “would slowly become available for users in Brazil beginning in May 2022, with the full customer base by the end of July 2022.”
In order to offer new cryptocurrencies to clients, “Nubank will do frequent curating,” according to the release. The bank would also “provide instructional resources to consumers concerned in digital currency transactions in order to motivate informed investment decisions.”
According to the release, Nubank’s crypto trading is run in collaboration with Paxos, a controlled blockchain infrastructure provider which will act as a custody provider and broker.
Paxos co-founder and CEO Charles Cascarilla stated, “Nubank’s entry into the crypto trading sector is a big step ahead not just for the company but also because of the region’s bitcoin adoption.”
Nubank’s founder and CEO, David Vélez, stated:
“Cryptocurrency is undoubtedly a growing trend in Latin America, one we’ve been watching closely and believe will have a profound influence.”
Nu Holdings, Nubank’s parent firm, claimed that it had devoted “1% of its balance sheet cash to bitcoin” in addition to commencing cryptocurrency trading.
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Nu Holdings is currently owned by Warren Buffett’s Berkshire Hathaway. Berkshire Hathaway’s holdings as of Dec. 31, 2021, according to its latest 13F filing with the US Securities and Exchange Commission (SEC), comprised Nu Holdings shares worth more than $1 billion. In June of last year, Berkshire Hathaway invested $500 million in Nu Holdings, months before the business went public.
Buffett, on the other hand, recently stated that cryptocurrencies do not generate anything, so he will not invest in them. Meanwhile, Charlie Munger, Berkshire Vice Chairman, thinks crypto is “stupid and evil.”
