Brazil’s largest digital bank Nubank announced Wednesday it is launching its token on the Polygon blockchain. Per the announcement, the token dubbed “Nucoin” will be made available to over 70 million of the bank’s customers in the first half of 2023.
Nubank to Launch Its Own Token Next Year
Nubank described Nucoin as a token that will be the basis for “creating a rewards program.” The token will be distributed to users for free and will offer certain benefits such as discounts and other perks, according to the bank.
“In addition, in the future, the idea is that Nucoins will also be traded in the cryptocurrency market, as is the case with bitcoin, for example,” the bank said.
The digital bank said it will select about 2,000 customers to test the token and give feedback before being made available to all. The selection of the testers will take place between October and November 2022.
“The project is another step ahead in our belief in the transformative potential of blockchain technology and to democratize it even more, going beyond the purchase, sale and maintenance of cryptocurrencies in the Nu app,” Fernando Czapski, general manager for Nucoin at Nubank, said in a statement.
Established in 2013, Nubank is a Brazilian digital bank and the largest fintech bank in Latin America. The bank currently caters to over 70 million customers across Brazil, Mexico, and Colombia. Nubank went public on the New York Stock Exchange (NYSE) under the ticker symbol NU, in December 2021.
Nubank’s Crypto Endeavors
Nubank started its major crypto journey after launching an in-app crypto trading and custody service powered by blockchain infrastructure platform Paxos in May. The service, which currently only offers Bitcoin (BTC) and Ethereum (ETH) trading, reached one million crypto users in Brazil less than a month after launch.
At the same time as launching an in-app crypto trading and custody service, the bank’s parent company, Nu Holdings, also purchased BTC equivalent to as much as 1% of its balance sheet to show its belief in the digital asset.
