Brazil’s largest digital bank, Nubank, has rolled out bitcoin purchase capabilities to all of its 53.9 million customers.
The Warren Buffett-backed fintech had announced the feature in May via a blog post, mentioning how the option would be rolled out in phases. At the time, the company also allocated cash to bitcoin.
The blog post was updated on Monday to reflect the new status: all Nubank customers now have access to the “Nubank Crypto” tab – where bitcoin can be traded.
“The option to buy cryptocurrencies through Nubank is now available to all of our customers. Update your app,” reads the updated blog post.
Users can buy and sell bitcoin instantly through the Nubank Crypto section of the Nubank app, the most widely used banking platform for Brazilians in 2021. Even though customers now have the option to acquire BTC, the ability to withdraw purchased coins to an external wallet is not yet available.
Bitcoin Magazine tested the new feature on Tuesday.
Nubank charges a small commission for each buy or sell transaction, which, despite variations, hovers around 0.02%. The app also displays educational content in the Crypto section, providing information about what bitcoin is for novice investors.
“The first cryptocurrency to exist,” Nubank’s app says when the user navigates to the page to buy BTC. “Bitcoin was created with the intention of decentralizing the financial system and has influenced all other cryptocurrencies ever since. Generally, people compare Bitcoin to gold and tend to store it for the future.
Unicorn start-up Nubank is the most popular digital bank in Brazil. The fintech is backed by Warren Buffett’s Berkshire Hathaway and recently went public on Nasdaq.
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.
Nubank joins the race to attract Brazilian bitcoin investors as players in the banking system compete to offer the best cryptocurrency services in the country – from neo-banks like Nubank to traditional banks such as Itau Unibanco. Investment banks such as BTG Pactual and XP Investimentos have also doubled down on the sector recently with their own plans to offer consumer Bitcoin services that are expected to come to fruition later this year.
The Brazilian cryptocurrency market is preparing for a new set of rules governing the activities of exchanges and custodians in the country. The country’s House of Representatives is expected to vote on the cryptocurrency overhaul bill in the coming weeks.