Nu, the largest Latin American digital bank, recently announced a major success in obtaining conditional approval of the national banking charter from the US Office of the Comptroller of the Currency (OCC). This development will see the Brazil-based bank expand its footprint into the United States, with potential strategic locations in Miami, the San Francisco Bay Area, Northern Virginia, and the North Carolina Research Triangle.
Nu Establishes First Presence, Next Steps in Focus
In a blog post on January 29, Nu shared a business milestone in obtaining a conditional approval that would allow the digital bank to expand its product offering in the American market under a de novo national subsidiary known as Nubank NA However, in order to obtain the full operational power of the national bank charter, the digital goods company is expected to meet several conditions in terms of compliance programs, risk management, etc.
In addition, Nubank NA must also receive all pending approvals from other regulators, including the Federal Deposit Insurance Corporation (FDIC) and the US Federal Reserve (Fed). The digital bank is expected to receive all the initial capital required within 12 months and be operational within 18 months, and its initial services are expected to include deposit accounts, credit cards, lending and digital asset warehousing.
Commenting on the conditional approval from the OCC, the founder and CEO of Nu Holdings, David Vélez expressed great excitement, saying that the expansion provides a unique opportunity to contribute to the next level of banking in the US.
Vélez says:
This accreditation is not just an extension of our work; it’s an opportunity to prove our tip that a digital-first, customer-centric model is the future of financial services around the world. While we remain fully focused on our core markets of Brazil, Mexico, and Colombia, this move allows us to build the next generation of banks in the United States.
Meanwhile, Nubank NA is expected to be led by founder Cristina Junqueira, while former President of the Central Bank of Brazil Roberto Campos will be the chairman of the company’s board of directors.
Crypto Market Overview
At the time of writing, the total crypto market capitalization is $2.84 trillion, following a slight decrease of 0.84% the previous day. Meanwhile, the daily trading volume is now estimated at $172.24 billion. Besides the expansion of Nu in the US, other recent pro-crypto developments include the Senate Agriculture Committee’s approval of the Clarity Act and other partnerships between the SEC and CFTC on crypto projects..
Featured image from Building Nubank, chart from Tradingview
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