Brazil’s Largest Brokerage Firm Announces Plans for a Crypto Exchange

Grupo XP, the largest brokerage firm in Brazil, has revealed that it plans to make a grand entry into the cryptocurrency industry. The company is set to launch a Bitcoin and Ethereum exchange.

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Grupo XP, the largest brokerage firm in Brazil, has revealed that it plans to make a grand entry into the cryptocurrency industry. The company is set to launch a Bitcoin and Ethereum exchange.

Grupo XP to bring crypto trading to Brazil

The firm, according to reports published by Bloomberg on September 21, will enter the burgeoning crypto space with the launch of its exchange, XDEX. The new trading exchange will offer two of the top digital assets; Bitcoin (BTC) and Ethereum (ETH).

Grupo XP currently occupies the top spot as Brazil’s largest financial group, a conglomerate of several companies that run a variety of businesses. An entry into crypto, therefore, could spell the beginning of a new chapter, something that already has the community abuzz.

According to Chief Executive Officer Guilherme Benchimol, the platform, which will be unveiled soon, will be one of the biggest in the region and will employ about forty people.

Grupo XP has reportedly set its targets on providing custodial services, which should see it hold at least $1 trillion Reals (about $245 billion) by 2020. It is an ambitious plan, but which the group can easily achieve given its experience in the brokerage industry.

In comparison, the projected $245 billion is almost four times the amount of money the company is expected to generate by the end of 2018.

Part of Grupo XP’s business expansion efforts will also see it launch its bank within the coming months.

Grupo XP CEO not pleased

The Bloomberg article quotes CEO Benchimol as saying that he hoped the company wasn’t in this position. He said getting into crypto is “a theme I’d rather didn’t exist,” before adding “but it does.”

He also notes that the firm did not have any other option but make a move into the digital assets space as it “felt obligated.” According to him, advancing to the cryptocurrency market has become inevitable.

Grupo XP is venturing into the world of digital assets largely due to the increasing popularity of crypto assets like Bitcoin, both locally in Brazil and among leading international financial institutions.

Brazillian crypto on the rise

At the moment, crypto is big news in Brazil, with over 3 million already “exposed” to top coin Bitcoin – a significant bump compared to the roughly 600,000 traditional stock market investors working in the country today.

In April 2017, Grupo XP announced that it would be launching an over-the-encounter (OTC) Bitcoin (BTC) exchange. It is a move that saw it register XP COIN INTERMEDIACAO by August of that year.

However, after receiving a capital injection worth 5 million reais (nearly $1.5 million), the company chose to rebrand the business, and it became XDEX.

XP’s announcement comes just days after the country’s Administrative Council for Economic Defense (CADE) announced it was probing six top banks for closing bank accounts run by crypto businesses.

Banks, on the other hand, maintain that what they did was in line with anti-money laundering (AML) requirements, claiming that brokerage firms did not provide client data as required.

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