- Brazil’s largest investment broker, XP Inc., will begin offering bitcoin trading next month.
- The broker will offer its trading services on a new cryptocurrency trading platform developed alongside Nasdaq.
- BitGo will serve as the custodian of the digital assets held by the trading platform.
XP Inc., Brazil’s largest investment broker by market value, will allow select clients to start trading bitcoin next month, according to a report from Reuters.
XP will list bitcoin and another cryptocurrency on its cryptocurrency trading platform, Xtage, by mid-August. The broker plans to expand its product offering by the end of the year, the company’s Chief Financial Products Officer Lucas Rabechini said, according to the report.
Institutional cryptocurrency company BitGo was selected as an XP custody partner for Xtage. BitGo offers institutional-grade services cold room multisignature wallets (multisig) to protect assets while providing insurance on assets held on the platform, as well as self-managed cold custody solutions. Initially, Xtage will would have does not support bitcoin withdrawals or transfers.
Xtage was the first announcement in May, and became available exclusively to employees in early July. XP mentioned that the rapid timeline was partly due to increasing competition from other financial institutions entering the ecosystem such as Nubank, Itau Unibanco and BTG Pactual.
“There are competitors doing their homework, some quite competent, but we are also competent,” Rabechini said.
The supposedly “super fast” trading platform was designed in partnership with Nasdaq with a focus on order execution and will integrate with its current apps. Moreover, Rabechini noted that this decision was about technology, not being able to assess the market at the right time.
“You can say ‘volume has been low, there will be few orders’, but we see this market growing consistently over time, and our long-term view is not just price driven, but also technology,” Rabechini said.