XP Inc. will provide bitcoin trading services using cold storage custody solutions on a new platform in collaboration with Nasdaq and BitGo.
According to a report by Reuters, XP Inc., the most significant investment firm in Brazil by market value, would enable specific clients to begin trading bitcoin next month.
By mid-August, XP will add bitcoin and one other cryptocurrency to its cryptocurrency trading platform, Xtage. According to the article, the broker intends to extend its product offerings by the end of the year, as stated by the company’s director of financial products, Lucas Rabechini.
BitGo, a cryptocurrency institution, was chosen as XP’s custody partner for Xtage. BitGo provides cold storage multisignature (multisig) wallets, insurance on assets maintained on the network, and self-managed complex custody options. Initial reports indicate that Xtage will not enable bitcoin withdrawals or transfers.
In early July, Xtage became accessible only to workers after being launched in May. XP said that the accelerated schedule was partly due to the increasing competition from new financial institutions like Nubank, Itau Unibanco, and BTG Pactual. “Rivals are doing their study, and some of them are very skilled, but so are we,” Rabechini said.
The supposedly “ultra-fast” trading tool was developed in collaboration with Nasdaq and would interface with its existing apps. In addition, Rabechini said that this choice is based on technology and not the inability to price the market at the optimal moment.
“You may argue ‘volume has been low, there will be few orders,’ but we see this market developing methodically over time, and our long-term emphasis is not just on pricing, but also technology,” added Rabechini.
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