First the NYSE is opening itself up to cryptocurrency. Now? Brazil’s largest independent brokerage is the latest example of a retail stock exchange to enter the cryptocurrency markets amidst a growing movement for stock exchanges to offer retail investors access to cryptocurrencies. Good news seems to be pouring in daily!
Grupo XP, the owner of XP Investmentos SA, the largest independent brokerage firm in Brazil, announced that they would be moving into the cryptocurrency markets by offering a platform exchange for Bitcoin and Ethereum in the next few months. Grupo XP’s CEO, Guilherme Benchimol, spoke about the launch of the new platform while at an event in Sao Paulo earlier this week. Imagine what the implications this is! Could this be like a platform like Binance? Or would they be offering products like the CBOE does currently, just futures? Who knows!? What do you think? Tell us on our Facebook page.
Currently, Cryptocurrency is a popular topic in Brazil, with investors having five times more exposure to bitcoin and cryptocurrency as they do stocks. The popularity of Bitcoin is what’s pushing Grupo XP to into the markets. Though, it must be noted, Benchimol isn’t excited about his exchange’s new product, saying “I must confess, this is a theme I’d rather didn’t exist, but it does. We felt obligated to start advancing in this market”. Sounds like a defeated individual. Remember, cryptocurrency and blockchain was designed to replace these systems. It sounds like Benchimol recognizes this.
This new platform comes as Brazil’s government is strengthening cryptocurrency laws and regulations by offering comprehensive frameworks outlining the tax laws surrounding this relatively new forms of digital assets. Brazil’s main regulatory authority, the CVM, has released a comprehensive document that offers guidance to fund managers seeking to offer cryptocurrencies to their offerings.
The new exchange will be called XDEX, and will be run by Thiago Maffra independently of the new exchange’s other platforms. This is also the latest example of traditional retail exchanges (NYSE among them) moving into the cryptocurrency markets.
In August, news broke that the NYSE’s parent company, Intercontinental Exchange (ICE), was entering the cryptocurrency market through a partnership with upcoming exchange, Bakkt. This latest announcement by Grupo XP is just another example of unprecedented level of corporate interest in blockchain and cryptocurrency.
Nasdaq is yet another major US based exchange also reportedly entering the cryptocurrency markets by acquiring a crypto-friendly startup based in Sweden. What’s confirmed is this: Nasdaq will be acquiring Cinnober for $190 million dollars in cash. Although Cinnober does not yet offer investors access to cryptocurrencies, they have been working on analytic tools for tracking and predicting the price of cryptocurrencies.
All of this points to what we believe is to be incredibly bullish news. What have you been doing? Have you been building your portfolio? Have you been waiting on the sidelines? What do you think about this market? Let us know on our Facebook page!
