Nubank, one of the world’s largest digital banking system, entered cryptocurrency trading sector. This initiative is contrary to public statements of its backer.
Nubank, a significant Brazil fintech company with more than 50 million customers, entered cryptocurrency trading sector, allowing its customers to buy and sell bitcoin and ether on its platform. Nubank will gradually roll out the new product to its entire customer base by the end of June, the Sao Paulo-based firm said in a statement.
According to David Velez, CEO and founder of Nubank, the goal of this initiative is to create an experience that is simple and intuitive enough to broaden access to new segments while also being robust enough for the more crypto-savvy.
“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.” Nubank CEO and co-founder David Vélez
Paxos the Head of Revenue Michael Coscetta also notes growing interest in crypto not just in Brazil, but across Latin America. We are reminded that El Salvador became the first country in the world to accept Bitcoin as legal tender, and the Cuban population are turning more and more to cryptocurrency under the pressure of the U.S. sanctions.
Nu Holdings, Nubank’s parent company, also said it is allocating roughly 1% of the cash on its balance sheet to bitcoin to show its belief in the cryptocurrency.
Here comes a peculiar observation: Nu Holdings is backed by Warren Buffett’s Berkshire Hathaway Inc., and Warren Buffett, in turn, is famously critical of bitcoin and cryptocurrencies in general. I can’t help feeling suspicious: was that his strategy all along? To undermine the impact of cryptocurrency in public, but now that cryptocurrencies are being sold off, dive into the asset without making too much noise? Or it can be just a case of diversification. Probably, they are allowed to take a risk at the price of 1% of Nu Holdings’ cash.