Nubank, a fintech bank in Brazil, announced the creation of the Nucoin token on the Polygon blockchain on Oct. 19, paving the way for a rewards program for its 70 million clients across Latin America.
The company said that the token will be available in the first half of 2023, and will recognize customer loyalty and engagement with the bank products without cost or fees for its users. The tokens can be redeemed for perks and discounts on selected products. Fernando Czapski, the general manager for Nucoin at Nubank, stated:
“This 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.”
As of this month, approximately 2,000 clients will be invited to participate in a discussion of the project details, including the decentralized process of product creation and its Web3 features. "We decided to bring a group of customers into this co-creation process precisely to refine our product ahead of the public launch, to ensure we get to a program that truly resonates with our customers' expectations and needs," noted Czapski.
“One of the largest digital banking institutions in the world, offering its own cryptocurrency is a strong testament to the utility blockchain and crypto have to offer,” said Sandeep Nailwal, co-founder of Polygon in a statement.
In May, the bank announced a partnership with Paxos to allow its clients to buy, sell and store cryptocurrencies through its app, a move aimed at expanding and improving access to crypto assets, eliminating complexity and friction for customers to buy, hold and sell digital currencies through the bank's app, and requiring no new account to open or transfer funds.
Earlier this year, Warren Buffett's Berkshire Hathaway dumped a portion of its Visa and Mastercard holdings and increased exposure in Nubank, purchasing $1 billion worth of stocks after selling $3.1 billion worth of Visa and Mastercard stocks combined.