Grupo XP, the owner of XP Investimentos SA is all set to step foot in the digital currency exchange space.
The brokerage is set to launch a platform for Bitcoin and Ethereum trading. Guilherme Benchimol, the Chief Executive Officer, announced that the exchange will launch towards the end of 2018.
The new exchange, XDEX, will be run by Thiago Maffra and the platform will be handled by around 40 employees. The exchange sets itself apart from other brokerage businesses by entering the digital currency market. Addressing a conference, Guilherme said that Grupo XP is obligated to step foot into this business due to the booming market.
Even though Group XP is apprehensive about entering the crypto exchange market, the company is bound to be successful. Brazil is experiencing an explosive user base in the cryptocurrency market. Guilherme believes that people have more interest in cryptocurrencies than the stock market; when traditional exchanges like Group XP enter the market, people feel safer investing in the currencies.
The CEO reported that the exchange aims to collect 1 trillion reais ($245 billion) under custody by 2020. The company plans to launch a bank in the coming months as well.
The entire statement contradicts with the policies of Brazil, which is looking to strengthen its cryptocurrency regulations. The Securities and Exchange Commission of Brazil even offer guidance to fund managers who are trying to add cryptocurrencies to their portfolios.
The Administrative Council for Economic Defense of Brazil also began an investigation into six large national banks last week. With the support of the Government and the country’s largest investment firm, in the coming months, the cryptocurrency market of Brazil will likely see an emergence of digital currency exchanges. The Brazilian market will soon be capable of providing services that were not available to the people less than nine months ago.
With the government now supporting banks to provide financial services to crypto-exchanges, the market will soon be open to international trades. The Brazilian government is setting an example to other countries where strict regulations placed upon cryptocurrencies prevents the market from flourishing.