Nu, the largest Latin American digital bank, has recently announced a major achievement in securing conditional approval of a national banking charter from the US Office of the Comptroller of the Currency (OCC). This development would see the Brazil-based bank expand its operational footprint into the United States, with sights set on potential strategic hubs in Miami, the San Francisco Bay Area, Northern Virginia, and the North Carolina Research Triangle.
Nu Establishes Initial Presence, Next Steps In Focus
In a blog post on January 29, Nu shares a business milestone in receiving a conditional approval that would allow the digital bank to extend its product offerings to the US market under the de novo national subsidiary known as Nubank N.A. However, to gain full operational powers of the national bank charter, the digital asset firm is expected to meet several criteria in terms of compliance systems, risk controls, governance, etc.
In addition, the Nubank N.A. must also obtain all pending approvals from other regulators, including the Federal Deposit Insurance Corporation (FDIC) and the US Federal Reserve (Fed). The digital bank is also expected to have received all required start-up capital within 12 months and begin operations within 18 months, with its initial service expected to include deposit accounts, credit cards, lending, and digital asset custody.
Commenting on the conditional approval from the OCC, the founder and CEO of Nu Holdings, David Vélez has expressed much excitement, stating the expansion provides a unique opportunity to contribute to the next level of US banking.
Vélez said:
This approval isn’t just an expansion of our operation; it’s an opportunity to prove our thesis that a digital-first, customer-centric model is the future of financial services globally. While we remain fully focused on our core markets in Brazil, Mexico, and Colombia, this step allows us to build the next generation of banking in the United States.
Meanwhile, the Nubank N.A. is expected to be led by co-founder Cristina Junqueira, while former President of the Central Bank of Brazil Roberto Campos will chair the company’s board of directors.
Crypto Market Overview
At the time of writing, the total crypto market cap is $2.84 trillion, following a slight 0.84% decline over the past day. Meanwhile, daily trading volume is now valued at $172.24 billion. Aside from Nu’s expansion into the US, other recent pro-crypto developments include the Senate Agriculture Committee’s clearance of the Clarity Act and another partnership between the SEC and CFTC on crypto projects.
Featured image from Building Nubank, chart from Tradingview
