Because of its unique circumstances, Latam has been a fertile ground to provide alternative finance and crypto-based services. Nubank, a Brazil-based digital Neobank, recently announced that it now serves 70,000,000 customers. As expected, most of these customers are located in Brazil. The neobank also has the ability to enter other markets such as Mexico with its 3.2 million customers and Colombia with its 400,000 customers.
Money Boxes are the products that have seen the greatest growth. These investment and planning options have more than 1.7million users. Nubank’s cryptocurrency division has also been a key driver of its growth. Customers can use the app to buy, hold and sell digital assets. A press release stated that more than 1.8million customers have made at least one cryptocurrency purchase through Nubank’s app.
David Velez, founder and CEO of Nubank, spoke about the growth of the company as well as the services provided.
Our rapid growth is due to an ongoing search for efficiency. This balances expansion, new products and increased revenue per client. Nubank will be a project that lasts for decades. We remain committed to our goal of removing all complexity from financial services in Brazil and Mexico.
Brazil’s Crypto Market Survives
In June, the company opened cryptocurrency trading services to more than 54 million Brazilian customers. It also holds bitcoin in its balance sheet. This announcement opened up the possibility for other Brazilian companies to follow Nubank’s lead and enter the cryptocurrency services marketplace.
Mercado Libre is the largest competitor to the company. This e-tailer has started offering crypto services last ye and recently created its own cryptocurrency called Mercadocoin. Others have followed their lead, including Rico a financial brokerage platform, which plans to offer cryptocurrency services until 2023. Picpay is a payments platform, which plans to launch its own stablecoin based in Brazil.
Traditional banks such as Santander have stated that they will incorporate cryptocurrency into their service portfolio over the next few months. The Brazilian Congress has not yet discussed the national cryptocurrency bill, which was a result of election-related issues. Crypto is still not being regulated in Brazil.