XP Inc to Launch Crypto Trading Platform in August

On Monday, XP Inc, a Brazilian brokerage, said that it expects to open its crypto trading platform to the public by mid-August. According to Reuters, the platform will initially offer Bitcoin (BTC) and Ethereum (ETH), with plans to expand its offering by the end of the year.

As of now, XP has 3.6 million customers but said that cryptocurrency trading will be subject to eligibility rules, including the amount of risk each client is willing to take. Lucas Rabechini, the company’s director, told Reuters that, starting next month, the Xtage platform will be open to customers with an ‘adequate investment profile’ for such operations.

“You can say ‘the volume has been weak, there will be few orders', but we see this market systematically growing over time, and our long-term view is not just focused on price, but also technology,” Rabechini commented. In early July, XP employees began testing Xtage, which was first announced in May.

Several large financial players in Brazil recently announced plans to offer crypto-related services to their clients, including Nubank, BTG Pactual and Itau Unibanco.

Itausa SA, a Brazilian investment firm, announced in March that it had sold 12 million class A shares in XP Inc for about 1.8 billion Brazilian real ($366.58 million). Reuters reports that the company holds 11.51% of the brokerage’s total capital.

XP was sold as part of Itausa’s strategy to lower its stake and raise additional capital during 2022, as the CEO, Alfredo Setubal said last month that the company would continue selling shares.

Itausa reiterated its strategy, saying that it still expects to sell 24 million shares of XP this year as it sees it as a non-strategic asset. Following its recent investments, the holding company noted it is in need of rebuilding its cash position.