XTAGE, the cryptocurrency arm of Brazilian financial services behemoth XP Investimentos (XP, Inc), will begin winding down its operations, according to a company email. As of tomorrow, users will no longer be able to purchase any digital assets listed on the platform, which includes Bitcoin, Ethereum, Polygon, Chainlink, Solana, Cardano, and Litecoin.
The reasons behind the shutdown are unclear, although the company said in its email to customers that the decision was internal and is not related to any risks concerning their clients.
Users will still be able to sell their assets, free of fees and brokerage charges, up until December 15. XTAGE said it hopes the two-month grace period will “facilitate the best decision-making” for customers looking to liquidate their positions. The company will also keep its customer service open until December.
Starting December 16, any remaining assets in users’ accounts will be sold off by XTAGE and the proceeds will be deposited in a corresponding digital account at Banco XP.
Founded in 2001, XP Investimentos is Brazil’s largest broker, reporting more than $1 billion Brazilian reals (roughly $202 million) in client assets under management, and was valued at $15 billion upon its Nasdaq listing in 2019. Its current market capitalization stands at $11.37 billion, according to MarketWatch.
XTAGE marked XP’s second foray into the cryptocurrency industry. The company launched the exchange XDEX in 2018, only to shutter in March 2020, citing regulatory uncertainty.
And the company, along with Itaú BBVA (Brazil’s largest private bank) and Banco Genial, was tasked with coordinating Brazil’s sixth crypto ETF, described as the “world first DeFi ETF.”
In spite of this week's announcement, XP Investimentos will continue to offer a range of crypto products for its customers interested in maintaining exposure to the digital asset space. This will include ETFs and crypto funds, the company said in its email.
Edited by Stacy Elliott.