Brazil-based digital bank Nubank, listed in New York through its holding company Nu Holdings, has recently applied for a national bank charter in the United States. This application marks a significant step as Nubank seeks to broaden its international presence beyond Latin American markets such as Brazil, Mexico, and Colombia.

Nubank’s US Expansion Plans

If granted, this charter would enable Nubank to operate more extensively within the US market by providing services like deposit accounts, credit cards, lending, and digital asset custody. The company has indicated that obtaining such a license could position it to serve US customers effectively and eventually integrate them into its existing service ecosystem.

Continued Focus on Latin America

Despite these ambitious plans for international expansion, Nubank remains committed to bolstering its footprint in its current markets. The bank has already surpassed 120 million customers across Brazil, Mexico, and Colombia, making it one of the largest purely digital banks globally according to MSN. It continues to compete with traditional Brazilian lenders like Itaú Unibanco.

Nubank’s co-founder will lead its US operations, while a former head of Brazil’s central bank has been appointed as the chair of the company’s board. Although regulatory approval is still pending, Nubank officials believe that working closely with US authorities will facilitate a broader product launch in due course.

Following the announcement, shares in Nu Holdings experienced a temporary increase of over 1%, reflecting investors’ confidence in this strategic move by the digital bank.