Nubank, the Warren Buffett-backed digital bank, buys Bitcoin and adds a trading app

Brazil’s largest digital bank has added bitcoin to its treasury and now allows customers to buy, sell and hold the currency in its mobile app.

  • Nubank now allows its customers to buy bitcoins in its mobile application.
  • Nubank will also allocate 1% of its portfolio to bitcoin to “reinforce the firm’s belief” in bitcoin’s potential, the firm said.
  • Bitcoin critic Warren Buffet holds shares of Nubank through his holding company Berkshire Hathaway, which gives the investor indirect exposure to BTC.

Nubank, Brazil’s largest digital bank, now allows customers to buy, sell and hold bitcoin in the bank’s mobile app, the company said in a statement. statement Wednesday.

The fintech will also 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 was intended to “reinforce the company’s belief in bitcoin’s current and future potential to disrupt financial services,” it reported. Examine.

Cryptocurrency infrastructure firm Paxos will provide necessary trading and custody services for Nubank’s offering, according to multiple reports. As a result, it appears that users using the Brazilian digital bank app to purchase 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 customers will have access to bitcoin integration. The bank expects all customers to be served within the next two 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 of the weight he carries.

Nubank’s cash allocation to bitcoin now gives indirect exposure to BTC 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 in its December IPO and recently doubled down with a $1 billion investment in Brazilian fintech.

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Sylvia B. Polson