Nubank increases crypto offer one day after Itaú debut

Photo: Alf Ribeiro / Shutterstock

Nubank partnered with Circle to offer a stablecoin pegged to the U.S. dollar, USD Coin. Starting in the first quarter of next year, the neobank will also allow its customers to transfer cryptocurrencies from their Nubank account to other digital wallets and vice versa. In an interview with newspaper Valor Econômico, Thomaz Fortes, the executive in charge of Nubank Crypto, said that the two new features are part of a strategy to provide “secure access” to the so-called decentralized finance (DeFi) environment for its customers.

But it’s not just the challenger bank that wants to show that it remains at the forefront of financial technology. On Monday, Itaú, the largest publicly traded bank in Latin America, announced that it would begin trading bitcoin and ether through its investment platform íon.

Competing with neobanks and specialized fintechs such as MB, Foxbit, and BTG Pactual’s Mynt, the bank’s advantage lies in the fact that it is also the custodian of assets — a factor that bank executives believe is relevant for investors, as regulated financial institutions must follow stricter asset segregation rules. The Central Bank is expected to issue specific rules for the sector only by mid-2024, demanding from crypto players what it already requires from payment institutions.

The two announcements come at a less turbulent time for crypto assets. Bitcoin’s valuation has increased by more than 130 percent this year, following a more than 60 percent drop in 2021 and the collapse of FTX. US regulators’ lawsuit against Binance, another global player — which involves 13 charges against the company, including mixing and misappropriating customer assets — does not appear to have dampened investor interest. Entering the segment is also paramount for traditional players, given the growing tokenization of conventional assets and the ongoing central bank digital currency project.

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.