Brazilian digital bank Nubank (NU) has won approval from the Office of the Comptroller of the Currency to establish a de novo U.S. bank, it said on Thursday.
The company applied in September for the national bank charter, seeking to operate under a comprehensive federal framework and facilitate the launch of deposit accounts, credit cards, lending and digital asset custody.
With the approval, Nu (NU) is now in the bank organization phase, in which Nu satisfies certain OCC conditions alongside pending required approvals from the Federal Deposit Insurance Corp. and the Federal Reserve. During this phase, the company will focus on fully capitalizing the institution within 12 months and opening the bank within 18 months.
“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,” Nu Holdings (NU) Founder and CEO David Vélez said in a statement. “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,” he added.
The new Nubank, N.A., unit will be led by N (NU) Co-Founder Cristina Junqueira, who has relocated to the U.S. Roberto Campos Neto, former president of the Central Bank of Brazil, will serve as chairman of the board.
NU shares slipped 0.8% in midafternoon trading.