Brazil’s largest bank, Nubank, will soon offer Bitcoin and Ethereum trading. The bank made the announcement on May 11, saying that customers would be able to buy the two cryptocurrencies for a minimum price of 1 Brazilian real.
Customers will be able to buy these assets from existing accounts, and won’t have to open specialized accounts. This will make entering the market easier. The bank also said that it may add new crypto assets in the future. As has been the case with many other existing financial institutions in the past, Paxos will be the partner that facilitates the process.
David Vélez, CEO and co-founder of Nubank, said that cryptocurrencies have been growing in popularity and could have transformative effects,
“Cryptocurrencies are a growing trend in Latin America. We have been following the market closely, and we believe that there is transformational potential in the region.”
Nubank is the largest fintech bank in Latin America, and as a neobank, offers a lot of innovative products and services. It operates in several companies, and its investors include Sequoia Capital and Berkshire Hathaway. It did allow customers to invest in cryptocurrencies before, via ETFs.
Cryptocurrencies are popular in Latin America. Some countries have been more open to allowing cryptocurrencies to exist than others, but more banks are steadily warming up to the idea of crypto.
Nubank Bitcoin and Ethereum trading appears as the market bleeds
The decision from the bank comes at a time when the market is experiencing a severe downturn. Bitcoin has dipped below $27,000 while Ethereum has dropped to the $1,800 level.
But more than bitcoin’s drop below that significant psychological level is the fact that LUNA has taken a dramatic plunge along with its associated algorithmic stablecoin UST. The latter has decoupled greatly from its $1 peg, falling to a low of $0.30, despite the efforts of the Luna Foundation Guard to maintain it. Luna’s co-founder Do Kwon has recently revealed further plans to try and salvage the ecosystem.
It’s not going to be a pleasant time for any market investor and any business launching crypto-related products and services. Australia launched its first bitcoin ETF on May 12, just as the market is experiencing a severe tumble.