BY CNA Team - September 24, 2018
Brazilian securities brokerage to launch crypto exchange
Grupo XP, which owns the largest securities brokerage in Brazil, XP Investimentos, is planning to launch a cryptocurrency exchange in the coming months in the face of overwhelming interest in cryptocurrencies.
Bloomberg says in a Sept 21 report that the company’s CEO, Guilherme Benchimol, revealed plans for the exchange, noting that around three million Brazilians have exposure to bitcoin versus just 600,000 that invest in stocks.
Benchimol is moving into the crypto space only reluctantly, even though last week Brazilian regulators allowed funds to invest in cryptocurrencies abroad.
“I must confess, this is a theme I’d rather didn’t exist, but it does,” the newswire quoted him as saying. “We felt obligated to start advancing in this market”.
The crypto exchange, to be called XDEX, will be set apart from the company’s other brokerage businesses.
Benchimol says the company is aiming to have US$245bil under custody by 2020, four times what it expects to have by year-end.
He adds that XP is also launching a bank in the next few months. Sao Paolo-based Itau Unibanco, the largest financial services group in Latin America, acquired a 49.9% stake in XP in May 2017 for US$2bil.
Image courtesy of XP Investimentos website.