Brazil’s Nubank partners with Polygon to launch its own cryptocurrency
- The biggest digital bank in Brazil by market value, Nubank, intends to launch its own token next year.
- This new cryptocurrency’s main function will be to act as the foundation for the benefits programme that the bank intends to develop.
Nubank has revealed the launch of Nucoin, its own cryptocurrency on the Polygon blockchain network, as part of the challenger bank’s digital currency strategy.
As a “new way to recognise customer loyalty and encourage engagement with Nubank products,” the company promotes Nucoin. Holders of the token will receive discounts and other benefits, according to Nubank.
The bank describes that this token will be introduced on the Ethereum blockchain in collaboration with Polygon Technology, which is the creator of one of the most well-known second-tier networks in the market and enables quicker and less expensive transactions within the Ethereum network.
These tokens will form the cornerstone of its customer loyalty rewards programme and will come with advantages like discounts and other perks.
Nubank will initially entice 2,000 users to actively engage in the co-creation of Nucoin. The most engaged and active members of NuCommunity, an online forum for Nubank customers, will be chosen to participate. Between October and November, the choice will be made.
The decision will be made in the months of October and November and will include those who have been most active in using the company’s goods and services as well as in participating in NuCommunity, an online forum for customer discussion.
Suggestions will be exchanged in a private section of NuCommunity, Nubank’s dedicated customer service question forum. More than seeking feedback at this stage, the suggestion is to investigate a Web3-style decentralised product creation process.
The project, according to Fernando Czapski, general manager for Nucoin at Nubank, “is another step ahead in our belief in the transformative potential of blockchain technology and to democratise it even more, going beyond the purchase, sale, and maintenance of cryptocurrencies in the Nu app.”
During the official launch, the Nucoin token will be given away “free of charge” to all customers of the digital bank. The event has no set date as of yet, but it is anticipated to occur sometime in early 2023. Customers can also obtain discounts on Nubank goods and services, for instance, as they acquire Nucoins.
Nubank is not the first bank to make progress in the cryptocurrency industry. It follows other forays into the cryptocurrency market by banking and payment companies. In an effort to assist card issuers in preventing fraud involving cryptocurrency exchanges, Mastercard introduced Crypto Secure in October.