XTAGE, the cryptocurrency branch of Brazilian financial services giant XP Investimentos (XP, Inc), has decided to wind down its operations. Starting tomorrow, users will no longer have the ability to purchase any of the digital assets listed on the platform, which includes popular cryptocurrencies such as Bitcoin, Ethereum, Polygon, Chainlink, Solana, Cardano, and Litecoin.
XP removes the crypto purchase feature from XTAGE
The specific reasons behind this closure remain somewhat mysterious. However, the company has communicated to its customers via email that the decision is an internal one and not prompted by any risks associated with their client base. Despite the impending shutdown, XTAGE has provided a grace period for users to manage their assets. Users will still be able to sell their holdings without incurring fees or brokerage charges until December 15.
XTAGE hopes that this two-month period will assist customers in making the best decisions regarding the liquidation of their cryptocurrency positions. Additionally, the company will maintain its customer service operations until December. Effective December 16, XTAGE will take the remaining assets in users’ accounts and sell them. The proceeds from these sales will be deposited into a corresponding digital account at Banco XP. XP Investimentos, founded in 2001, stands as Brazil’s largest broker, boasting more than $1 billion Brazilian reals (approximately $202 million) in client assets under management.
The firm says it will continue to offer crypto products
The company was valued at $15 billion when it was listed on Nasdaq in 2019, and its current market capitalization, according to MarketWatch, is approximately $11.37 billion. XTAGE marked XP’s second venture into the cryptocurrency industry. The company initially launched the exchange XDEX in 2018, only to close it down in March 2020 due to regulatory uncertainties. XP Investimentos, alongside Itaú BBVA (Brazil’s largest private bank) and Banco Genial, had the responsibility of coordinating Brazil’s sixth cryptocurrency exchange-traded fund (ETF).
According to the crypto market in the region, the ETF was described as the “world’s first DeFi ETF.” Despite the decision to close XTAGE, XP Investimentos has made it clear that they will continue to offer a range of cryptocurrency products to customers interested in maintaining exposure to the digital asset space. These offerings will include ETFs and cryptocurrency funds, ensuring that the company maintains a presence in the cryptocurrency market.