Nubank reaches 1 million crypto users in just two months
Nubank, the largest Brazilian digital bank, reached the mark of 1 million active users making low-cost cryptocurrency transactions, just two months after launching the service via partnership with Paxos.
Nubank, which is owned by Bitcoin critic Warren Buffet, has partnered with the New York-based exchange and stablecoin issuer for an exclusive in-app crypto trading experience. In particular, the US-listed broker’s customers are now able to buy, hold and sell a handful of crypto assets — Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
“Nubank has, in eliminating complexity, a value proposition that permeates all our products. With crypto activities, this becomes even more relevant due to the fact that it is a market with complex systems that make it difficult for people interested in taking their first steps to join,” Thomaz Fortes, leader of Nubank’s crypto area, said in a statement.
Through Paxos, Nubank clients are able to trade cryptocurrency at a commission of just 0.12% – 0.18% of trade value, with a BRL $ 1.00 (~US $0.20) minimum per order. Plus, there are no added spreads, markups, or custody fees. The crypto features will be gradually available for customers in Brazil starting this month and is anticipated to cover the entire customer base by the end of July 2022.
“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. At Nubank, we aim to broaden access to new segments while being robust and powerful for the more crypto-savvy,” explains David Vélez, CEO and founder at Nubank.
Paxos signed big enterprise clients
Nubank’s foray into the digital asset space is noteworthy due to the firm’s reputation for serving more sophisticated clients. The fintech – whose 50 million users make it one of the world’s largest digital banks – debuted on the New York Stock Exchange in 2021 in a listing that floated it as Latin America’s most valuable financial institution, worth $52 billion.
Although Nubank’s shares have taken a hit since then, the company is well-positioned for growth as Brazil alone accounts for more than a quarter of the $500 billion crypto market in Latin America.
Paxos’ status as a licensed financial services company in the US allows it to offer different products, such as crypto trading and settlement, and custody services. Further, the firm can issue tokenized securities and also its customers to access the traditional banking system.
The unique position has enabled Paxos to sign big enterprise clients, such as Interactive Brokers, Revolut, Crédit Suisse, Société Générale and StoneX. It has also joined forces with the world’s most influential crypto exchange, Binance, to secure the NY regulator’s approval to launch a USD-backed stablecoin.
