On Monday, the Brazilian bank Itau Unibanco (ITUB4.SA) introduced a cryptocurrency trading service for customers of its investing platform. This makes the largest lender in the country the most recent local participant to enter the market for the exchange of digital assets.
The head of digital assets, Guto Antunes, stated in an interview that the new service Itau is launching would first permit trading of bitcoin, the most widely used cryptocurrency, and ether. However, the lender intends to add more cryptocurrencies in the future.
“It begins with Bitcoin, but our overarching strategic plan is to expand to other crypto assets in the future,” he said. He added that any growth would depend on how the country’s cryptocurrency regulatory framework matures.
By making this step, Itau is putting itself in a position to compete in Brazil with other local companies, such as the cryptocurrency exchange MB and the digital assets arm of the investment bank BTG Pactual (BPAC3.SA), as well as with global giants like Binance.
According to Antunes, Itau contends that it would differentiate itself from competitors by acting as a custodian to protect its consumers’ assets. This move occurred a month after two local players stated their intention to exit the cryptocurrency sector.
On the other hand, the financial services business PicPay, controlled by the conglomerate J&F, which also controls the meatpacker JBS (JBSS3.SA), cited regulatory uncertainty as the reason for closing down its cryptocurrency service. Brokerage and investment company XP (XP.O.) did not explain the decision.
