These Banks Are Venturing Into Crypto Despite Ongoing Bear Market

The Berlin-based neobank – N26 – established a cryptocurrency service that will enable customers to buy and sell 100 cryptocurrencies.

The largest fintech bank in Latin America – Nubank – also hopped on the bandwagon, launching its own cryptocurrency in Brazil. Interestingly, Berkshire Hathaway – the conglomerate holding company spearheaded by the famed investor and crypto critic Warren Buffett – is among the financial backers of the banking institution.

Even though the crypto market has significantly declined in 2022, some banks remain bullish in the sector. One such example is the German N26 which partnered with Bitpanda to allow its users to trade 100 digital currencies, including Bitcoin (BTC) and Ether (ETH).

The service, called N26 Crypto, will be first available in Austria, and it should reach other countries in the next six months. The company also plans to expand the number of supported tokens to 194 in the future.

Chief Product Officer Gilles BianRosa argued that the service lets users “dip their toes into the water in a way that’s not frothy.” He outlined that the crypto winter has not vaporized the clients’ interest in bitcoin and alternative coins:

“Our users are extremely interested in crypto. That interest remains super high, even in a bear market.”

The executive said N26 believes in crypto’s long-term development. “It’s not like we’re trying to time the launch on how the market is doing,” he affirmed.

BianRosa highlighted the “very strong working relationship” between N26 and watchdogs. The institution has already informed them about the upcoming service and received their approval.

Nubank’s Move

A separate press release disclosed that the Brazilian digital banking startup – Nubank – will launch its own cryptocurrency in the country. The token, called Nucoin and built on Polygon, should see the light of day during the first half of 2023. The company described the upcoming product as “a new way to recognize customer loyalty and encourage engagement with Nubank products.”

Prior to its official launch, the firm will select 2,000 customers to test the asset who will give feedback on its pros and cons.

Headquartered in Sao Paulo, Nubank is the biggest fintech bank in Latin America. It serves over 52 million people in Brazil and approximately 1.5 million users in Mexico and Colombia.

Earlier this year, Berkshire Hathaway – Warren Buffett’s investment giant – purchased $1 billion worth of the institution’s stocks. The interaction between the legendary investor and the crypto-friendly bank came as a surprise since he is a fierce opponent of bitcoin.