According to a statement released on Wednesday, the bank also plans to allocate 1% of its equity to Bitcoin (BTC) through its parent company Nu Holdings Inc., which is listed on the New York Stock Exchange (NYSE).

Read Also: Solana Co-Founder: People Will Stop Using Bitcoin If It Doesn’t Move To Proof of Stake

The fintech said the move is targeted at strengthening its conviction in the current and future potential of Bitcoin in disrupting financial services.

According to multiple reports, crypto infrastructure company Paxos will provide the necessary trading and custody services for Nubank’s offering.

The features will be rolled out in phases. At the moment, the option is in the testing phase, where a percentage of Nubank’s customers will have access to the integration. The bank expects this service to reach all customers over the next couple of months.

Sharing the reason for choosing to invest in Bitcoin in a statement, the fintech said the flagship cryptocurrency holds over 40% of the crypto market share, which implies that it’s the strongest digital currency.

Read Also: Central African Republic Officially Adopts Bitcoin (BTC) As Legal Tender

Warren Buffett Indirectly Benefits

Despite being a stern Bitcoin critic, the billionaire chairman and CEO of Berkshire Hathaway, Warren Buffett, will indirectly benefit through his firm’s investment in the Brazilian digital bank Nubank.

According to a CNBC report, the holding company invested $500 million in June 2021. It also purchased 30 million shares of the company for $250 million after going public in December 2021.

The company also disclosed that it sold $1.8 billion and $1.3 billion worth of Visa and Mastercard stock, respectively, indicating a shift away from credit companies to gain exposure to their fintech rivals.

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In a filing of Feb. 14, the company disclosed the acquisition of $1 billion worth of Nubank Class A stock in the fourth quarter of 2021. The most notable of the new development is that the company said it has sold $1.8 billion and $1.3 billion worth of Visa and Mastercard stock, respectively, indicating a shift away from credit companies to gain exposure to their fintech rivals.

Warren Buffett, who is popularly known as the “Oracle of Omaha” has over the years downplayed emerging decentralized finance solutions such as Bitcoin (BTC). He once termed the flagship crypto as an asset that does not create anything.

However, now that his company has a stake in Nubank implies that Buffett is starting to accept the current trend, which is fintech. This shows that he’s now willing to associate with companies that are part of the crypto ecosystem.

The new investment implies that Nubank, which is exposed to the emerging crypto sector via Easynvest, could use the additional revenue opportunities to benefit its top investors, which include the billionaire entrepreneur Warren Buffett, who once termed Bitcoin as a “rat poison squared.”

Warren Buffett’s Portfolio Is Dominated By Crypto-Loving Companies

Although Buffett is not directly investing in Bitcoin (BTC), he is already gaining indirect exposure to the emerging industry as companies in his portfolio foray into the crypto sector.

Back in October 2021, just a month before Bitcoin recorded its all-time high of $69,000, the 5th largest bank in the United States, U.S. Bancorp, launched a crypto custody service for its institutional investment managers, due to an increase in demand from their “fund services clients” over the last few years.

Likewise in October 2021, Bank of America announced the launch of a crypto research initiative, citing growing institutional interest.

Reacting to the new development, Greg Waisman, co-founder and chief operating officer of crypto wallet service Mercuryo, said:

“The Nubank investment can be tagged as Buffett’s way of supporting the fintech/crypto world without taking back his criticisms of the past.”

Waisman added that Buffett is now supporting the crypto ecosystem indirectly. He said, “Even an indirect exposure is bound to increase the positive sentiment that may push more investors into the space.”

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