Nubank and Mercado Pago Halt Crypto Transactions Over Provider Glitch
The institutions attributed this pause in their crypto services to instability from an external data provider. The two companies use Paxos as a custody provider, which sparked rumours of a possible hack on social media, but no official reports have been released. Mercadopago and Nubank Stop Crypto D
Latin American financial platforms are dealing with operational bottlenecks after fintech crypto withdrawal halts affected major digital banking apps in the region. Brazil-based Nubank and regional platform Mercado Pago paused deposit and withdrawal functionalities across their crypto services, citing technical challenges from an external infrastructure provider.
As reported by Bitcoin.com News, both institutions rely on regulated infrastructure partner Paxos for custody and trading operations. The sudden interruption led to widespread speculation across social channels regarding potential security breaches, although neither platform has indicated any compromise of user balances or private data.
Fintech institutions across Latin America have increasingly embedded digital asset trading into conventional mobile banking applications over recent years. While these integrations streamline digital asset access for millions of retail users, they also tie operational uptime directly to third-party custody and liquidity partners.
Representatives for the fintech platforms emphasized that customer funds remain secure despite the temporary service suspension. Market observers are closely monitoring updates from Paxos and affected institutions to see when normal transaction processing will be fully restored across both applications.
Key takeaways
- Nubank and Mercado Pago temporarily suspended crypto deposit and withdrawal services.
- The pause was triggered by external technical issues linked to custody provider Paxos.
- Both financial institutions affirmed that customer assets remain completely safe.