- Neobank and FinTech (financial technology) solution Nubank has announced that it will expand its crypto offerings.
- Nubank is backed by Warren Buffet’s Berkshire Hathaway, a prominent multinational conglomerate.
- The additional cryptocurrencies offered by the platform will include Cardano, Near Protocol, Cosmos and Algorand.
- Nubank is Latin America’s largest FinTech bank, with this news marking an expansion of crypto adoption worldwide.
Nubank is expanding its cryptocurrency offerings to now offer access to four new cryptocurrencies, bringing a total of 20 cryptocurrencies to the popular platform.
This is comprised of several Layer-1 blockchains including Cardano (ADA), NEAR Protocol (NEAR), and Algorand (ALGO), as well as the blockchain platform Cosmos (ATOM) which focuses on interoperability between different blockchains.
Nubank holds over 90 million users. Its US$8B (AU$12.7B) revenue in 2023 solidified it as the largest revenue earner of any neobank globally.
Nubank is also the largest neobank in South America and is backed by the conglomerate Berkshire Hathaway, whose CEO is the renowned Warren Buffet. Buffet still retains a large ownership share of Berkshire Hathaway.
Berkshire Hathaway initially invested US$500M (AU$793.9M) into Nubank in 2021, followed by another US$1B (AU$1.58B) in 2022, showcasing high conviction in the neobank.
At one stage Nubank launched its own crypto token, however Nubank suspended trading of the token in 2024.
The Growing Relevance of Neobanks
Neobanks have become increasingly popular worldwide as an opportunity to increase banking and financial services opportunities.
Rather than having to jump through hoops often involving visiting a physical branch, a neobank just requires access to a phone so you can download an app.
Neobanks have helped to provide opportunities for unbanked persons globally but are also an increasingly popular option for existing bank users. This is due to their ease of access and expanded financial services. A number of neobanks are starting to become ‘all-in-one’ apps.
Data suggests that Neobanks are projected to grow from US$210.16B (AU$333.74B) in 2025 to US$3.4T (AU$5.39T) by 2032, with a CAGR of 48.9% during this forecasted period.
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Crypto and Latin America
While Latin America may not currently have one of the largest crypto economies compared to other major continents, adoption at a grassroots level is strong throughout the region. Brazil, Argentina, and Mexico are leading Latin America regarding crypto adoption.
Cryptocurrencies have become increasingly popular and important in day-to-day life, particularly in the face of the devaluation of fiat currencies in the region.
Notably, centralised exchanges, as opposed to decentralised exchanges, are utilised at a much higher ratio in Latin America compared to most other regions.
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