Despite being in the middle of “crypto winter,” things are looking pretty hot for Nubank’s new cryptocurrency platform. After launching Nubank Cripto in June, the São Paulo-based digital bank has reported that the new platform has already brought in 1 million customers to purchase cryptocurrencies.
The platform allows users to buy and sell bitcoin and ether through a crypto trading and custody service provided by Paxos’ blockchain infrastructure. In May, the company announced it was allocating roughly 1% of the cash on its balance sheet to bitcoin to prove its commitment to the cryptocurrency, regardless of bad headlines.
“Nubank has, in eliminating complexity, a value proposition that permeates all our products,” said Thomaz Fortes, general manager of Nubank’s crypto business, in a statement. “With crypto activities, this becomes even more relevant due to the fact that it is a market with complex systems that make it difficult for people interested in taking their first steps to join.”
The company is looking to take advantage of the growing trend of crypto use in Latin America. Nubank co-founder and CEO David Vélez said in a statement that “crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region,” before adding that the experience of trading cryptocurrencies still remains “very niche as customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences.”
Nubank is the 11th-largest holding in EMQQ Global’s Next Frontier Internet & Ecommerce ETF (FMQQ), which is designed to provide exposure to the internet and e-commerce sectors within the developing world.
By focusing on the internet and e-commerce in emerging markets, FMQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the Next Frontier Internet and Ecommerce Index (FMQQetf.com).
FMQQ has no China-based holdings. Securities must meet a minimum of a $300 million market cap and pass a liquidity screen that requires a $1 million average daily turnover.
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