The Brazilian financial services group XP, which has popularized the equity market among small savers since 2001 and which entered the Nasdaq with fanfare in 2019, adds a new string to its bow. Its brokerage service has just launched a crypto trading platform dubbed “XTAGE”. The company, which has more than 3.6 million users, is aiming for 200,000 active investors by the end of the year.
A new Brazilian giant in the crypto game
XP, the largest Brazilian market value brokerage firm, has officially launched its crypto trading platform. XP executives rang the opening bell for the Nasdaq Partner Exchange on August 15 to celebrate the news.
At the beginning, the platform, available on the XP app, only allows bitcoin and ether trading. Other assets will be added over the months, as well as new features.
Nasdaq’s robust and flexible infrastructure technology, designed to meet market demands, as well as current and future regulatory structures, will allow XP to reliably scale its platform and introduce new asset classes as they grow and evolve.
Roland Chai, Executive Vice President of Nasdaq, in Bitcoin Magazine
In addition to the technological association with the American stock market and the integration with MetaTrade 5, a forex and stock trading tool, BitGo will be the asset custodial partner with its highly secure cold storage solution. The possibility of transferring funds to another wallet is not in the news, but would be possible in the longer term.
As always, the crypto option is supposed to meet the growing demand from investors. Thus, according to an internal investigation by XP, relayed by Bitcoin Magazine, 60% of its customers wanted to access the purchase of cryptocurrencies and preferably with an interface they already know.
Fintech players in Brazil fully into crypto
XP’s initiative comes after that of major local players. NubankBrazil’s #1 digital bank, integrated Bitcoin into its treasury and launched a crypto trading service earlier this year.
BTG Pactualanother major player in the sector, also launched in the bath in the fall of 2021. In July, it is the most popular financial app in Brazil PicPay which announced a salvo of commitments in the industry. The fintech will not only support payment via cryptocurrencies, but also plans to create its own exchange, launch a stablecoin backed by local real and venture into the field of NFTs and Web3.
Finally, thehe Brazilian branch of the Spanish banking giant Santander could in the coming months offer a range of crypto services to its customers.
Unusually benevolent regulatory bodies
A deployment of institutional crypto services that takes place under the benevolent eye of the country’s first regulatory body, the Brazilian Securities Commission (CVM), and the Central Bank. Its governor, Roberto Campos Neto, has just made his dissonant, discordant voice heard even among central bankers, during a debate on CBDCs.
In general, central bankers want to regulate with a heavy hand. I understand, but I disagree. It may be a mistake to regulate like that… We must not leave behind the technological advances that will come with that.
And he insisted that one of its objectives is to integrate the digital and regulatory world, in a different way from what other central banks do.
An opinion shared by the president of the CVM, João Pedro Nascimento, also present at the event, who calls for non-invasive regulation for the crypto market.
Banning a revolution is not something we will do.
The adoption of a rather favorable regulatory framework for cryptocurrencies is well underway in the country. But it still risks waiting because of the presidential and legislative ballot which will take place at the beginning of October and which more or less coincides with the last discussion which must take place in the Chamber of Deputies as to its approval. The elected officials who will have the lead in the elections are very likely to postpone again a subject, from their point of view, less burning.