Brazilian banks expand crypto services after new rules

Major Brazilian banks are expanding cryptocurrency services after new federal rules for digital assets came into force across the country. The regulations set licensing, custody and reporting standards that apply to banks and licensed crypto firms.

Itaú Unibanco, Banco do Brasil, Bradesco, Santander Brasil and Nubank have announced or accelerated plans to add crypto services for retail and institutional clients. Planned offerings include brokerage for major cryptocurrencies, custody solutions, access to tokenized funds and structured products, and on-ramps and off-ramps between accounts and crypto platforms.

Banks are updating customer interfaces and back-end systems to support crypto transactions and compliance. Several institutions report hiring blockchain engineers, expanding compliance teams and integrating third-party custody technology to meet new custody standards and operational-resilience rules. Platform changes include tools for real-time reporting and reconciliations linked to on-chain activity.

The Central Bank of Brazil and the securities regulator, the CVM, laid out the regulatory framework. Requirements cover licensing, customer identification, enhanced know-your-customer and anti-money-laundering controls, custody arrangements, capital and insurance for custody services, and rules for market conduct and investor protections.

Where banks do not build in-house trading or custody, they are partnering with licensed domestic and international crypto platforms to provide order books and liquidity. Banks are piloting application programming interfaces and wallet services to connect corporate clients to blockchain settlement rails. Some lenders are testing tokenized versions of traditional assets, such as funds and bonds, which would let clients hold fractionalized securities on blockchain records while the bank performs custody or distribution roles.

Regulatory requirements have led to staged product rollouts. Initial launches focus on straightforward services such as trading and custody for widely used cryptocurrencies. More complex offerings, including access to decentralized-finance protocols and tokenized credit instruments, remain under review as firms assess compliance, capital and insurance implications.

Banks report rising client demand for crypto exposure from younger retail customers and some asset managers seeking diversification. Institutions are implementing controls including disclosure requirements, client suitability checks and limits on leverage for crypto products.

Before the federal rules, Brazil’s crypto market operated with a mix of guidance and private practices, with exchanges handling most retail access. The new framework aligns oversight across federal agencies and sets national standards for how banks and licensed crypto firms must protect clients and operate markets.