Warren Buffett-Backed Nubank Launches Crypto Trading — Holds Bitcoin on Balance Sheet – Finance Bitcoin News


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

Nubank now offers in-app encryption trading

Nubank, one of the world’s largest digital banking platforms, announced on Wednesday that it is entering the cryptocurrency trading market. The bank serves about 54 million customers in Brazil, Mexico and Colombia.

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The company today launched in Brazil an exclusive cryptocurrency trading experience in the app, which initially offers bitcoins and ethereum trading starting at BRL 1.00 (~ 0.20 USD).

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

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

The bank noted that the new cryptocurrency trading service “will be gradually available to customers in Brazil from May 2022, reaching the entire customer base by the end of July 2022.”

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

Nubank Association with Paxos

Nubank’s cryptocurrency business operates in partnership with Paxos, a regulated blockchain infrastructure provider that will act as a custodian provider and broker, according to the announcement.

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

David Vélez, founder and CEO of Nubank, said:

There is no doubt that cryptography is a growing trend in Latin America, which we have been following closely and believe will have a transformative 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 earmarked “~ 1% of its cash balance for bitcoins.” The company stated:

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 a current 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 will not invest in cryptocurrencies because they do not produce anything. Meanwhile, Berkshire Vice President Charlie Munger believes the crypto is “stupid and evil”.

What do you think about Nubank, backed by Warren Buffett, offering cryptocurrency trading and keeping bitcoins on its balance sheet? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection of economics and cryptography.

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