Brazilian Banks Accelerate Cryptocurrency Adoption Amid Regulatory Framework Development

Major Brazilian banks are expanding their cryptocurrency services, aligning with the country's regulatory framework. Itaú, the largest asset management bank in Brazil, offers 15 cryptocurrencies through its investment app, including Bitcoin, Ethereum, and USDC. Meanwhile, Nubank, Brazil's largest fintech company, lists 28 cryptocurrencies.

Notably, Banco do Brasil, the country's most profitable state-owned bank, has seen over 11 million reals (approximately $2.1 million) in transactions since launching direct Bitcoin and Ethereum purchases in January. However, these transactions are not reflected on the banks' balance sheets, as per a central bank file from March 2026 showing zero virtual assets held by Brazilian banks.

The expansion of cryptocurrency services by Brazilian banks is concurrent with the growth of the country's digital asset market. According to data from Receita Federal, Brazil's federal revenue agency, Brazilians transferred over 50 billion reals (approximately $9.87 billion) in cryptocurrencies last year, a five-fold increase from 2020, with 98.3% of transactions coming from corporate accounts.

The regulatory framework for virtual assets was established by the Brazilian government through the Virtual Asset Legal Framework Act in 2022. This law grants regulatory authority over the industry to the central bank and sets requirements for institutions offering cryptocurrency services, including licensing, minimum capital, and client account segregation. The deadline for compliance is October 30, 2026.