“Nubank (3.69, -0.68, -15.56%), the Brazilian digital bank invested by Warren Buffett, announced on Wednesday that it will partner with blockchain startup Paxos Trust Co. to allow its clients to trade cryptocurrency.
More than 50 million Nubank customers will be able to trade bitcoin and ethereum starting Wednesday, Paxos CEO Michael Coscetta said. He said that Paxos has seen increased demand for digital assets in Brazil, and the move will create more financial inclusion for Nubank’s customers by offering more payment methods.
São Paulo-based Nubank said in a statement that it will gradually roll out cryptocurrency trading services to all of its customers by the end of June. Its parent company Nu Holdings said in the same statement that it had purchased bitcoin equivalent to 1% of its balance sheet gold position, but did not provide a specific figure.
Buffett has always been against cryptocurrencies. He once called Bitcoin "rat poison" and was called "Bitcoin's number one enemy" by Silicon Valley venture capitalist Peter Thiel. He said at a recent Berkshire shareholder meeting that even if someone were to sell him all the bitcoin in the world for $25, he wouldn't want it. This has sparked backlash and ridicule from cryptocurrency proponents, with some pointing out that while Buffett has repeatedly disparaged bitcoin in public, his investment portfolio cannot escape its ties to bitcoin, with particular reference to his investment in Nubank.
