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Itau Unibanco (ITUB) Expands Offering, to Provide Crypto Trading
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Itau Unibanco Holding S.A (ITUB - Free Report) has introduced a cryptocurrency trading service for its clients, thus expanding the scope of its product offerings. This was first reported by Reuters.
ITUB would initially permit trading of bitcoin and Ethereum, and depending on the evolution of the crypto regulation in Brazil, other cryptocurrencies will be added under its trading service. Guto Antunes, head of digital asset stated, "It starts with bitcoin, but our overarching strategic plan is to expand to other crypto assets in the future".
Trading services aside, Itau Unibanco is expected to act as a custodian, ensuring secure storage of its clients’ digital assets. Antunes added, “The most important thing is that when you keep your money in the bank account, you will have the guarantee of Itau’s balance sheet as security for the amounts invested”.
ITUB’s focus on client satisfaction, strength in services offered as well as a solid network franchise will help it to compete with various local and global firms undertaking cryptocurrency trading.
The bank had begun efforts to digitalize its assets back in July 2022 when it created a new business unit named, Itaú Digital Assets. The unit would transform assets into digital representations known as “tokens”.
Brazil’s central bank has been preparing for the introduction of its digital real known as Drex. Accordingly, several Brazilian financial institutions like Itau Unibanco, BTG Pactual and Santander Brasil have been escalating efforts to improve their technological infrastructure which is required to ensure nationwide implementation of Drex.
ITUB’s shares have gained 17.2% on the NYSE over the past six months compared with the industry’s growth of 8.2%.
While ITUB is seeking to start its cryptocurrency trading service, JPMorgan Chase & Co.’s (JPM - Free Report) digital retail bank, Chase, in the U.K., decided to restrict customers’ access to cryptocurrency-related transactions. JPM said that effective Oct 16, 2023, there would be a limit on the ability of its customers to engage in crypto transactions in the U.K.
A JPMorgan spokesperson stated, “We've seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account”.
Chase is not the first bank to block or restrict crypto transactions. Earlier this year, banks like NatWest Group plc (NWG - Free Report) and Banco Santander (SAN - Free Report) imposed tighter restrictions on U.K. customers looking to use crypto.
In order to protect its customers from crypto-related scams, NatWest imposed new limits on the daily and monthly amount consumers can send to crypto exchanges. NWG customers can only send a maximum of £1,000 per day and £5,000 over a 30-day period to crypto exchanges.
Similarly, Spain’s Santander said that it would block U.K. customers from sending real-time payments to crypto exchanges. While SAN prohibits payments from a customer’s account to Binance, customers can transfer funds to their accounts from Binance.
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Itau Unibanco (ITUB) Expands Offering, to Provide Crypto Trading
Itau Unibanco Holding S.A (ITUB - Free Report) has introduced a cryptocurrency trading service for its clients, thus expanding the scope of its product offerings. This was first reported by Reuters.
ITUB would initially permit trading of bitcoin and Ethereum, and depending on the evolution of the crypto regulation in Brazil, other cryptocurrencies will be added under its trading service. Guto Antunes, head of digital asset stated, "It starts with bitcoin, but our overarching strategic plan is to expand to other crypto assets in the future".
Trading services aside, Itau Unibanco is expected to act as a custodian, ensuring secure storage of its clients’ digital assets. Antunes added, “The most important thing is that when you keep your money in the bank account, you will have the guarantee of Itau’s balance sheet as security for the amounts invested”.
ITUB’s focus on client satisfaction, strength in services offered as well as a solid network franchise will help it to compete with various local and global firms undertaking cryptocurrency trading.
The bank had begun efforts to digitalize its assets back in July 2022 when it created a new business unit named, Itaú Digital Assets. The unit would transform assets into digital representations known as “tokens”.
Brazil’s central bank has been preparing for the introduction of its digital real known as Drex. Accordingly, several Brazilian financial institutions like Itau Unibanco, BTG Pactual and Santander Brasil have been escalating efforts to improve their technological infrastructure which is required to ensure nationwide implementation of Drex.
ITUB’s shares have gained 17.2% on the NYSE over the past six months compared with the industry’s growth of 8.2%.
Image Source: Zacks Investment Research
Currently, ITUB carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
While ITUB is seeking to start its cryptocurrency trading service, JPMorgan Chase & Co.’s (JPM - Free Report) digital retail bank, Chase, in the U.K., decided to restrict customers’ access to cryptocurrency-related transactions. JPM said that effective Oct 16, 2023, there would be a limit on the ability of its customers to engage in crypto transactions in the U.K.
A JPMorgan spokesperson stated, “We've seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account”.
Chase is not the first bank to block or restrict crypto transactions. Earlier this year, banks like NatWest Group plc (NWG - Free Report) and Banco Santander (SAN - Free Report) imposed tighter restrictions on U.K. customers looking to use crypto.
In order to protect its customers from crypto-related scams, NatWest imposed new limits on the daily and monthly amount consumers can send to crypto exchanges. NWG customers can only send a maximum of £1,000 per day and £5,000 over a 30-day period to crypto exchanges.
Similarly, Spain’s Santander said that it would block U.K. customers from sending real-time payments to crypto exchanges. While SAN prohibits payments from a customer’s account to Binance, customers can transfer funds to their accounts from Binance.