XP Investimentos SA, largest securities broker in Brazil, is gearing up for an upgrade in the Bitcoin OTC market. Over the Counter bitcoin trading has gained popularity in the country, attracting some of the largest banks and brokers to tap into the growing industry.
The firm is reportedly developing a new venture for the digital currency trading space. It has already filed a patent in October 2017 for the brand XP Bitcoin. It would be its first attempt to enter the crypto domain being backed by a recently registered company XDEX Intermediacao.
As of now, the group has not come up with an official statement. Therefore, we can merely speculate about the services the new brokerage will provide. Meanwhile, an unidentified source confirmed to Portal do Bitcoin that the firm will be indulged in over the counter services to assist the trade of large volume of transactions in bitcoin or fiat currencies.
XP Investimentos’ decision to enter the crypto space has also given hints about the interest of the biggest bank in Brazil in being directly involved in the market. Itaú Unibanco Holding SA recently proposed to buy a 74.9 percent stake in XP Investimentos and also a 49.9 percent in XP’s voting capital for a fess of $1.7 billion.
Bitcoin has been gaining massive popularity in the Brazilian culture with lots of individuals and businesses investing in the digital currency. Brazilian business and economics students have forced universities to initiate courses related to virtual currencies, for ex. A Masters Degree program. The amount of bitcoin investors in Brazil has exceeded the number of people on the Sao Paulo Stock Exchange.
With an estimated GDP between $2 to $3 trillion Brazil, is the most prominent country in South America. The new brokerage will have ease in finding big shot investors in Brazil’s huge population of more than 208 million people. According to reports, bigger players in the crypto space are dealing through a private network for international OTC trading. They are trading billions of dollars each month within their little club. Unlike using professionals on the Wall Street, they are closing big deal via Skype.
On the other hand, another powerful economy, China, has ceased all operation in its fast-growing over the counter options market. The decision comes under the government policy to eliminate digital currency usage and mining from China.
Hwabao Securities stated that OTC options saw a jump of 44.2 percent last year in its trading turnover which amounted to 501.1 billion yuan ($79.85 billion). Similarly, rapid growth has been witnessed in the Shanghai Stock Exchange.
The government has released new regulations after several reports speculated that many of the options in the OTC market had been sold to retail investors.
It should be noted that bitcoin is going through a gradual increase in its value. Experts have predicted bitcoin reaching the $250,000 mark by the end of the year. If XP Investimentos SA succeeds in taping the Brazilian crypto market, it will probably enjoy a monopoly, at least in Brazil.