Santander, a Spanish global banking giant, is entering the Brazilian cryptocurrency market. On Thursday, the CEO of the bank’s Brazilian division disclosed that the bank will soon start offering crypto trading services for its Brazilian clients. In addition, the bank is likely to reveal more about its ambitions for cryptocurrency in the company’s upcoming earnings announcement. The announcement will likely come in mid-October.
Santander attracted to South America’s vibrant crypto market
The crypto industry has proven its resilience in 2022, with the number of cryptocurrency users rising, despite a substantial drop in crypto prices. The Brazilian market, in particular, has shown strong growth trends on the institutional front. In Brazil, a number of established financial institutions have jumped into the cryptocurrency market with their own offerings.
However, according to Mario Leao, the CEO of Santander Brazil, his bank’s decision is not influenced by its competitors. Instead, he claims, the decision is due to a high level of interest in crypto-related services among the company’s clientele. It appears that the Spanish bank is confident in its plans for cryptocurrency in Latin America. Previously, it partnered with Agrotken, a company established in Argentina, to develop tokenized lending facilities for Argentina’s farmers.
Santander, nonetheless, isn’t the only major lender getting into crypto. It took Nubank, Brazil’s largest digital lender, less than a month after going live with its crypto trading services to reach a million subscribers. Also, this year, PicPay, a Brazilian fintech company, will begin offering a crypto exchange and a stablecoin linked to the Brazilian real. There’s also the e-commerce platform Mercado Libre that’s already allowing cryptocurrency transactions.
Despite the recent market troubles, cryptocurrencies remain attractive as alternative investment vehicles. The strong show by cryptocurrencies in South America will likely continue attracting more institutional interest. With increasing uncertainty about the global economy, driven by fears of recession, more investors will likely be looking to diversify their investments.