Nubank, Brazil’s and Latin America’s largest digital bank, announced in a statement about the partnership with Paxos that would allow Paxos users to purchase, trade, and store bitcoins directly through Nubank.
Nubank said that it would dedicate around 1% of its net assets to Bitcoin (BTC) through the cashier of Nu Holdings, a business that manages the Nubank Group, in conjunction with introducing the new cryptocurrency transaction services.
Key Highlights of Nubank
- Nubank’s mobile app now allows consumers to purchase bitcoin.
- Nubank will invest 1% of its portfolio in bitcoin to “strengthen the company’s belief” in bitcoin’s potential, according to the corporation.
- Warren Buffet, a vocal critic of bitcoin, owns Nubank stock through his holding firm Berkshire Hathaway, giving him indirect exposure to bitcoin.
According to various sources, Paxos, a cryptocurrency infrastructure startup, would offer the essential trading and custody services for Nubank’s offering. As a result, consumers who acquire bitcoin through the Brazilian digital bank’s app would be unable to withdraw bitcoin to a wallet they control.
The feature will be implemented gradually. The option is now in the testing phase, with just a small percentage of Nubank’s clients accessing the bitcoin integration. However, the bank anticipates serving all customers within the following several months.
Nubank explained its decision to invest in the Bitcoin ecosystem in a statement, stating that Bitcoin has over 40% of the total market share of all cryptocurrencies and is deemed the strongest cryptocurrency owing to its weight.
Warren Buffet, chairman and CEO of Berkshire Hathaway, now has indirect bitcoin exposure because of Nubank’s treasury allocation. Buffet is a renowned investor and Bitcoin skeptic. According to a CNBC article, the holding firm invested $500 million in Nubank in June 2021, bought 30 million shares for $250 million when it went public in December, and recently increased its stake in Brazilian fintech with a $1 billion investment.
