Itaú Unibanco, Brazil's Largest Bank, Launches Cryptocurrency Trading Service
Summary:
Brazil's largest bank Itaú Unibanco is introducing a cryptocurrency trading service, offering Bitcoin and Ether to its clients, with plans to add more digital currencies in the future. The bank will serve as the cryptocurrency custodian and plans to prioritize the secure storing of these assets. This move was announced shortly after two local firms exted the crypto market, making Itaú Unibanco one of the few financial institutions to expand their crypto services amidst nationwide anticipation of the upcoming digital Brazilian currency, the Drex.
Brazil's largest bank by assets, Itaú Unibanco, has embarked upon a new venture offering cryptocurrency trading to its customers via its investment platform, as reported by Reuters on the 4th of December. The prominent Latin American bank will begin its crypto trading service with Bitcoin (BTC) and Ether (ETH), according to the bank's head of digital assets, Guto Antunes. More cryptocurrencies are planned to be added to the offering, at a later stage.
Itaú Bank will act as the custodian for the cryptocurrencies on the trading service, taking on the responsibility of storing crypto assets for its clientele. Antunes highlighted that to begin with, customers of Itaú will not have the functionality to make deposits or withdrawals of cryptocurrency from separate crypto wallets. He assured that the significant point to note is that the amounts invested will be held securely, backed by the guarantee of Itau’s balance sheet.
Cointelegraph’s request for comments from Itaú Unibanco remained unanswered.
In other related events, Brazil's top banks, including Itau Unibanco, BTG Pactual, and Santander Brasil, are reportedly scaling up personnel and resources in anticipation of the nationwide introduction of the digital Brazilian real, known as the Drex. Itaú has also previously launched a digital asset custody service earlier in the year, with Antunes revealing that 85% of the bank's clients expressed interest in having the bank secure their crypto assets.
This news comes approximately a month after two local financial firms declared their exit from the crypto marketplace. Reuters reported that the investment firm XP Investimentos abruptly shut down its crypto-related services, without providing any explanation, whilst PicPay, a financial services company owned by the large conglomerate J&F, pointed to regulatory ambiguity as the reason for closing down its crypto operations.
Published At
12/4/2023 12:12:22 PM
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