The biggest independent brokerage of Brazil will enter the crypto exchange business, reported Bloomberg on Thursday.
Guilherme Benchimol, the CEO of Group XP told Bloomberg that, they will be launching an exchange with around forty members called XDEX in the upcoming months. Comprising of numerous companies from the various business background, currently, the Group XP is the largest financial group in Brazil.
XP will be launching a bank in the next few months. And reportedly they are expecting to have $1 trillion reais ($245 billion) by 2020, which is around four times more than what the company expects to raise by the end of this year.
Furthermore, Benchimol said, “must confess this is a theme I’d rather didn’t exist, but it does…and we felt obligated to start advancing in this market.” Citing the rising popularity the reason behind the companies moves towards the crypto business, he said, around 3 million Brazilians are invested in Bitcoin as compared to 600,000 in the traditional stock market.
Last April the company announced its plan to launch an over-encounter (OTC) BTC exchange. It was reportedly a fresh move from XP, which first registered an outfit called XP COIN INTERMEDIACAO in August 2017. Following a 5 million reals (around $1.5 million) capital injection, later in 2017, they rebranded themselves as XDEX.
Regarding alleged monopolistic practices in the crypto business, Brazil’s Administrative Council for Economic Defense (CADE) launched a probe into six major national banks earlier this week. According to the CADE report, “the main banks are imposing restrictions or even prohibiting … access to the financial system by cryptocurrency brokerages.” The banks are claiming that due to the absence or lack of client data many brokers’ accounts were closed.