- Itau Unibanco launches cryptocurrency trading and custody services.
- Initial focus on Bitcoin and Ether, with plans for more cryptocurrencies.
- Itau’s move follows other Brazilian firms’ exit from the crypto market.
On Monday, Itau Unibanco, Brazil’s biggest bank, started offering a cryptocurrency trading service. This new feature is for clients using its investment platform, making it the latest Brazilian bank to join the digital asset exchange market.
Initially, Itau Unibanco’s cryptocurrency service will support trading in Bitcoin and Ether. Guto Antunes, the head of digital assets at the bank, mentioned in an interview that while the service begins with these two, there are plans to include more cryptocurrencies in the future. He emphasized that the expansion would depend on the development of cryptocurrency regulations in Brazil. This initiative places Itau in direct competition within the Brazilian market, not only with local entities like MB’s crypto exchange and BTG Pactual’s Mynt, but also with international players such as Binance.
“The most important thing is that when you keep your money in the bank account, you will have the guarantee of Itau’s balance sheet as security for the amounts invested.”
Guto Antunes, digital asset head, Itau Unibanco bank
Itau Unibanco differentiates itself from competitors by not only offering cryptocurrency trading but also acting as a custodian to secure users’ assets, according to Guto Antunes. This development occurs roughly a month after two local companies exited the crypto market. While the brokerage and investment firm XP did not disclose the reasons for discontinuing its crypto service, the financial services company PicPay, part of the J&F conglomerate which also owns meatpacking giant JBS, pointed to regulatory uncertainties as the cause for its withdrawal.
According to Bloomberg, this update arrives as major Brazilian banks, including Itau Unibanco, BTG Pactual, and Santander Brasil, are increasing their staff and resources in anticipation of the national introduction of Brazil’s digital currency, the Drex. Earlier this year, Itau Unibanco launched its digital asset custody service, with Guto Antunes revealing that 85% of their clients showed interest in storing their cryptocurrencies with the bank.
This news follows the recent departure of two local entities from the cryptocurrency market. As per Reuters, the brokerage and investment firm XP Investimentos has closed its cryptocurrency services, though the reasons for this decision were not disclosed. Meanwhile, the financial services company PicPay, part of the J&F conglomerate which also owns the meatpacking company JBS, reportedly exited the crypto business due to regulatory uncertainties.
