Nubank, the largest Brazilian digital bank, now allows customers to buy, sell and hold bitcoin in the bank’s mobile application, the company said in a statement Wednesday.
The fintech also will allocate 1% of its equity to bitcoin through its parent company Nu Holdings Inc., which is listed on the New York Stock Exchange (NYSE). Nubank said the move seeks to “strengthen the company’s conviction in the current and future potential of bitcoin in disrupting financial services,” reported Exame.
Cryptocurrency infrastructure company Paxos will provide the necessary trading and custody services for Nubank’s offering, according to multiple reports. As a result, it appears that users leveraging the Brazilian digital bank’s app for buying bitcoin will not be able to withdraw BTC to a wallet they control.
The feature will be rolled out in phases. Currently, the option is in the testing phase, where a few percent of Nubank’s customers will have access to the bitcoin integration. The bank expects all customers to be served over the next couple of months.
In its statement, Nubank detailed its reasoning for investing in the Bitcoin ecosystem, stating that Bitcoin holds over 40% of the total market share of all cryptocurrencies and is considered the strongest cryptocurrency due to the weight it carries.
Nubank’s treasury allocation to bitcoin now gives indirect BTC exposure to legendary investor and Bitcoin critic Warren Buffet, chairman and CEO of Berkshire Hathaway. According to a CNBC report, the holding company invested $500 million in Nubank in June 2021, acquired 30 million shares for $250 million as it went public in December and recently doubled-down with a $1 billion investment in Brazilian fintech.