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Brazilian bank Itau Unibanco has entered the cryptocurrency trading market, making it the largest lender in the country to offer such a service and it aims to provide trading of largest cryptocurrencies like Bitcoin and Ether.
Itau Unibanco has announced the launch of a cryptocurrency trading service for its investment platform. The service will initially allow trading in bitcoin and ether, with plans to expand to other cryptocurrencies in the future.
Competition in the Brazilian Crypto Market
Itau’s entry into the market comes as other local players, such as MB and BTG Pactual’s Mynt, also operate in the space. Global giants like Binance are also present in Brazil. Itau argues that it will stand out from competitors as it also acts as a custodian, safeguarding users’ assets.
Now, adding to the point announcement follows the departure of two local players from the market last month. Brokerage and investment company XP did not provide a reason for closing its crypto service, while financial services firm PicPay cited regulatory uncertainties as the reason for its exit.
Expanding Crypto Offerings
Itau’s digital asset head, Guto Antunes, stated that the bank’s overarching strategic plan is to expand its crypto offerings beyond bitcoin and ether, subject to how crypto regulation evolves in Brazil. Antunes added that the move sets Itau up to compete with other local players in the market.
The entry of Itau Unibanco into the Brazilian cryptocurrency trading market is a significant development for the industry in the country. As one of Brazil’s largest banks, Itau’s move is likely to attract more institutional investors to the market and further legitimize cryptocurrencies in Brazil. However, it remains to be seen how regulatory developments will impact the bank’s expansion plans for its crypto offerings.