Nu Holdings Ltd. (NU), a leading digital bank in Latin America, saw its stock soar 5.31% in pre-market trading on Monday morning. The surge is attributed to the expected launch of a new Brazilian investment fund called Danantara, which is anticipated to drive growth opportunities for the fintech company.

According to reports, the Brazilian government is set to unveil Danantara, a sovereign wealth fund aimed at managing investments outside the national budget. This move is expected to provide a significant boost to the country's financial sector, including digital banking platforms like Nu Holdings.

Analysts suggest that Danantara's focus on driving investments and economic growth could create favorable conditions for fintech companies operating in Brazil. As a major player in the digital banking space, Nu Holdings is well-positioned to benefit from increased demand for innovative financial services and potential partnerships or collaborations with the new investment fund.