XTAGE to Cease Operations, Users Can Sell Assets Until December 15
XTAGE, the cryptocurrency arm of Brazilian financial services giant XP Investimentos, has announced that it will be winding down its operations. Starting tomorrow, users will no longer be able to purchase any digital assets listed on the platform, including Bitcoin, Ethereum, Polygon, Chainlink, Solana, Cardano, and Litecoin. The reasons behind the shutdown are unclear, but XTAGE assured customers in an email that it is an internal decision and not related to any risks concerning their clients.
Sell Assets with No Fees or Charges Until December 15
Although buying will be disabled, users will still have the opportunity to sell their assets until December 15 without any fees or brokerage charges. XTAGE hopes that this two-month grace period will allow customers to make informed decisions when liquidating their positions. Additionally, the company plans to keep its customer service open until December.
Remaining Assets Will be Sold Off Starting December 16
Starting from December 16, XTAGE will sell off any remaining assets in users’ accounts. The proceeds from these sales will be deposited into corresponding digital accounts at Banco XP.
About XP Investimentos
XP Investimentos is Brazil’s largest broker and was founded in 2001. It manages over $1 billion Brazilian reals (approximately $202 million) in client assets and had a valuation of $15 billion upon its Nasdaq listing in 2019. Currently, its market capitalization stands at $11.37 billion according to MarketWatch.
XP’s History in Cryptocurrency
This is not XP’s first venture into the cryptocurrency industry. The company launched the exchange XDEX in 2018 but closed it down in March 2020 due to regulatory uncertainty. XP Investimentos, along with Itaú BBVA and Banco Genial, was also involved in coordinating Brazil’s sixth crypto ETF, which is touted as the “world’s first DeFi ETF.”
XP Investimentos Continues to Offer Crypto Products
Despite XTAGE ceasing operations, XP Investimentos will still provide a range of crypto products for customers interested in maintaining exposure to the digital asset space. This will include ETFs and crypto funds.
Hot Take: XTAGE Shuts Down Cryptocurrency Operations
Brazilian financial services company XP Investimentos is shutting down its cryptocurrency arm, XTAGE. Users will no longer be able to purchase digital assets on the platform, but they can sell their assets without fees until December 15. XTAGE assured customers that the decision is internal and not related to any client risks. Starting from December 16, any remaining assets will be sold off by XTAGE. XP Investimentos, Brazil’s largest broker, will continue to offer other crypto products such as ETFs and crypto funds. This move marks XP’s second exit from the cryptocurrency industry after closing down its exchange XDEX in 2020.
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