Itau Unibanco, Brazil’s and Latin America’s biggest banking institution has extended its tendrils into cryptocurrency trading for its customers as a service under its investment platform.
The financial giant will begin its initial crypto investment system with BTC (Bitcoin) and ETH (Ethereum) and allow its clients to invest in them. Subsequently, it intends to expand its crypto investment portfolio, according to the head of digital assets Guto Antunes.
Breaking Ground: Itau Unibanco’s Bold Move Into Cryptocurrency Trading
Brazil’s largest bank venturing into cryptocurrency trading is nothing short of an uplift for the cryptocurrency space, considering that Brazil is the third largest economy in the Americas. As a leading financial institution taking the leap into crypto trading, more financial institutions in Latin American geography are most likely to be next in the crypto procession.
Earlier in November last year, the company announced its intentions to launch cryptocurrency custody services this year, with its Digital Assets department which is in charge of crypto to man the tech side of the custodial service.
Itau Unibanco has been big on custody for its customers, considering it as an important security element it can add to its list of investment services, especially in the security risk-prone crypto sphere.
“Custody is a fundamental element in this context, because, especially in a new market like crypto assets, it brings security to investors,” said Eric Alftafim, product manager at Itau Unibanco last year.
He reiterated the bank’s commitment to protecting investors’ assets.
“We will safeguard customer assets in a reliable environment,” added Alftafim.
Key Features Of Itau Unibanco’s Crypto Trading Service And Its Potential Impact on the Financial Industry
Itau Unibanco’s crypto custodial service rolls out in two major phases. In the initial phase, customers will not be able to deposit or withdraw crypto assets using external wallets. In essence, the bank will be the custodian of the cryptocurrency assets and be liable for their security.
After the initial phase, Itau Bank says it will extend the crypto custody service to other companies or institutions. That way, they can expose investors to diversified investment models and opportunities.
According to Guto Antunes, the bank’s head of digital assets, about 85% of their clients showed interest in giving the bank custody of their cryptocurrencies. For a bank that has 33,000 service points and a reach of 55 million customers worldwide, it’s definitely a win for the crypto industry if that large percentage of its customers start trading crypto, beginning with Bitcoin and Ethereum.