The parent company of Brazil’s largest brokerage is going to enter into the crypto space by releasing an exchange for Bitcoin (BTC) and Ethereum (ETH) very soon, Bloomberg reported on September 21.
Grupo XP, the owner of the brokerage firm XP Investimentos, plans to start a platform in the next few months. Chief Executive Officer of Grupo XP, Guilherme Benchimol said that the firm will release an exchange known as XDEX in the next few months and it will have 40 employees. Group XP is the leading financial group in Brazil, consisting of companies with different business models.
Guilherme Benchimol, Speaking at an event in Sao Paulo, said, “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.”
XP has most likely set a goal to reach $1 trillion reais ($245 billion) under custody by 2020, which is 4 times more than what the firms hope to raise by the end of this year. Moreover, XP is going to start a bank in the next few months.
Benchimol also illustrated that the company is being drawn into the crypto business due to the popularity of digital currencies among investors. More than 3M people have invested in Bitcoin, which is very high as compared to 600,000 people who invest in stocks.
Firstly, Grupo XP declared its ambitions to release an over-encounter (OTC) BTC exchange in April 2018. The new initiative was most likely first for XP, Which initially indexed an outfit known as XP COIN INTERMEDIACAO in August 2017. Then, after a 5 million capital injection, the firm renamed to become XDEX.
This week, Brazil’s Administrative Council for Economic Defense (CADE) started a research in six leading national banks about supposed monopolistic acts in the crypto world. According to CADE report, “the main banks are imposing restrictions or even prohibiting … access to the financial system by cryptocurrency brokerages.” The bank most likely said that the brokers’ accounts were closed because of lack of client data.