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Nubank, A Digital Bank, Has Purchased Bitcoin And Added A Cryptocurrency Trading Facility

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Nubank, Brazil’s largest digital bank, announced Wednesday that users can now purchase, sell, and store bitcoin through the bank’s mobile application.

Fintech will also invest 1% of its shares in bitcoin through its parent business, Nu Holdings Inc., a New York Stock Exchange-listed Corporation (NYSE). The move, according to Nubank, aims to“strengthen the company’s conviction in the current and future potential of bitcoin in disrupting financial services,” reported.

According to various sources, Paxos, a cryptocurrency infrastructure startup, would supply the essential trading and custody services for Nubank’s offering. As a result, it looks that 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 in stages. The option is currently in testing, with only a small percentage of Nubank’s clients having access to the bitcoin integration. The bank anticipates that all customers will be supplied during the next few months.

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Nubank explained its motivation for investing in the Bitcoin ecosystem in its statement, claiming that Bitcoin has over 40% of the total market share of all cryptocurrencies and is considered the strongest cryptocurrency owing to the weight it carries.

Warren Buffet, chairman and CEO of Berkshire Hathaway, now has indirect BTC exposure because to Nubank’s treasury allocation to bitcoin. According to CNBC, the holding company invested $500 million in Nubank in June 2021, paid $250 million for 30 million shares when it went public in December, and recently doubled down with a $1 billion investment in Brazilian fintech.