By Brazil Stock Guide – Brazil’s deposit insurance fund said on Tuesday (28) that R$41 billion in Banco Master certificates of deposit (CDBs)—spread across 1.6 million creditors—qualify for coverage. According to reporting from Valor Econômico, roughly R$36 billion of that total came through the country’s three largest digital investment platforms: XP Inc. (XP), BTG Pactual (BPAC11) and Nubank (NU).
People familiar with the matter told the publication that XP distributed about R$26 billion in Master-issued CDBs, in addition to R$4 billion from Will Bank, which is controlled by Banco Master Múltiplo but was not placed into liquidation. BTG sold an estimated R$6.7 billion, while Nubank accounted for roughly R$2.9 billion.
More than 99% of the investments sold by the platforms fall within the insurance limit of R$250,000 per CPF (Brazilian taxpayer ID), meaning the overwhelming majority of affected clients will be fully covered by the country’s deposit guarantee mechanism, the FGC.
The fund may begin payments later this year, according to the original report. XP, BTG and Nubank did not comment.
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