Largest Brazilian Broker To Launch A Crypto Exchange

The largest Brazilian brokerage will step into the crypto world by launching an exchange for Ethereum (ETH) and Bitcoin (BTC) in the coming time, reported by Bloomberg on September 21.

Guilherme Benchimol, The Chief Executive Officer of Group XP, told Bloomberg that the company would launch an exchange known as XDEX in the upcoming months, with across nearly 40 employees. The largest financial group in Brazil, Grupo XP comprises companies with many business models.

Reports say that XP has set a goal to get $1 trillion reais ($245 billion) under the custody by 2020. It’s four times what the company is expecting to raise by the end of 2018. Also, XP will start a bank in the sooner few months.

Benchimol told, he “must confess, this is a theme I’d rather didn’t exist, but it does”. He further added, “we felt obligated to start advancing in this market”. Notably, the company is being forced into the crypto business with the rising popularity of cryptocurrencies among the investors. 3 million Brazilians have exposure to Bitcoin as a comparison with just 6,00,000 that invest in the stock market.

In the beginning, Grupo XP declared its plans for launching an over-encounter (OTC) BTC exchange by April. The move was the first for XP, which first registered an outfit known as XP COIN INTERMEDIACAO in August 2017. Later that year, the company rebranded to become XDEX following 5 million reals which are about $1.5 million.

Earlier this week, the Administrative Council for Economic Defense of Brazil launched a probe into the six leading national banks in regards to alleged monopolistic practices in the crypto space. “The main banks are imposing restrictions or even prohibiting … access to the financial system by cryptocurrency brokerages”, Per a CADE report. The banks reportedly prove that the brokers’ accounts were frozen owing to the absence or lack of client data.