Brazil’s Largest Bank Broadens Bitcoin and Ether Trading: What You Need to Know

Itaú Unibanco, one of Latin America’s leading private banks, has recently extended its Bitcoin and Ether trading services to its entire customer base.

With over 60 million clients, Itaú began offering cryptocurrency transactions through its investment platform, ‘Ion,’ in December 2023. Initially available to a select group, the bank gradually made the service accessible to more customers via the platform’s app.

Guto Antunes, the head of Itaú Digital Assets, confirmed this expansion during an interview with a local publication.

According to Antunes, the bank has been conducting weekly surveys among customers who were permitted to trade cryptocurrencies. These surveys indicated a high level of acceptance and trust in Itaú’s custody solutions.

“We have a stake and a partnership with Liqi, but nothing in terms of custody. The entire custody solution, since it was conceived, was created with architecture and fiduciary duty within Itaú,” said Antunes. Unlike other institutions that rely on third-party services for cryptocurrency storage, Itaú developed its internal tool to safeguard customers’ crypto wallets, with support from the tokenizer Liqi.

Aligning with Central Bank Regulations

Itaú has implemented individual digital wallets for each client, meeting the asset segregation requirements set by Brazil’s Central Bank (BC) in its upcoming cryptocurrency regulations. The BC is expected to introduce comprehensive regulatory proposals for the crypto sector by the end of this year.

The ‘Ion’ app has been downloaded over 3.5 million times on both Android and iOS platforms, reflecting significant interest in cryptocurrency trading. “Even in the staggered phase, it was a relevant number for the crypto universe and a surprise,” Antunes remarked.

Currently, Itaú supports trading in Bitcoin and Ether but plans to expand its offerings to include other cryptocurrencies based on customer demand and regulatory risk assessments. The bank is also closely monitoring BC’s anticipated guidelines on stablecoins to ensure compliance and readiness for new market opportunities.

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Overcoming Challenges and Future Prospects

One of the main challenges Itaú faced during the initial rollout was training its managers to effectively advise clients on this new asset class. To address this, the bank developed a network-first solution, featuring an AI chatbot designed to assist experts and managers in answering key customer questions.

“We created a network-first solution, an AI chatbot, that experts and managers have access to understand key customer questions,” Antunes explained.

As the cryptocurrency market continues to evolve, Itaú Unibanco’s proactive approach and alignment with regulatory standards position it well to cater to the growing interest in digital assets.

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This expansion not only reflects the increasing mainstream acceptance of cryptocurrencies but also highlights Itaú’s commitment to providing secure and innovative financial services to its customers.

By integrating cutting-edge technology and robust internal systems, Itaú Unibanco is setting a precedent for other financial institutions in Brazil and beyond.

The bank’s strategic move into the cryptocurrency space underscores its dedication to staying ahead of market trends and meeting the evolving needs of its clients.