Grupo XP to Launch Bitcoin and Ethereum Exchange-
Grupo XP to Launch Bitcoin and Ethereum Exchange-Day by day the crypto sector is becoming more accepted by major industries such as financial services. Many traditional financial products such as CFDs and futures contracts have been released for cryptocurrencies.
Grupo XP, the largest independent broker in Brazil is set to get involved in the crypto sector. Which will also will launch Bitcoin and Ethereum trading platform by the end of 2018.
Grupo XP is the parent company of XP Investimentos SA. Grupo will integrate Bitcoin and Ethereum into the existing infrastructure of the brokerage. Hence, allowing more than three million investors in Brazil to invest in the asset class.
Grupo XP’s mission
Grupo XP to Launch Bitcoin and Ethereum Exchange-“To help Brazilians invest better, offering the ideal solutions for each investor”. Currently, it consists of 500,000 active users and over 120 billion in the country’s currency reals (~$30 billion) under custody. Grupo XP is reportedly planning to control 1 trillion reals (~$245 billion) by 2020 through its custodial services and is also planning to launch a bank in the near future.
Thus, Grupo XP feel that there is more of an obligation to get involved in this market. This new exchange is going to be a separate entity from their current businesses and it will be operated by Thiago Maffra. Its name is XDEX and there will be 40 people working on it starting off.
Even though there exists a strong demand for crypto services, Benchimol seems a bit reluctant to enter into digital assets market. Benchimol recently 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”.
Current market structure:
But this announcement from Grupo XP, had surprised everyone from South America cryptocurrency market because it comes right at the time of when Brazilian government has taken its first approach to legitimizing the market with stable financial services and banking partners. cryptocurrency market of Brazil will be in emergence for exchanges that enables for the open market to establish exchanges.
The country’s Securities and Exchange Commission (CVM) prohibited investment funds from trading in cryptocurrency. CVM released a new set of rules and regulations which allows funds to invest directly in crypto assets. This can be done through acquiring of “shares of funds, derivatives, and assets traded in third jurisdictions”. The head of the country’s central bank, Ilan Goldfajn, said that last year Bitcoin was a bubble and likened it to a pyramid scheme.
But it’s sure that Grupo XP, will surely increase the demand for crypto asset exchange with space XDEX.