Warren Buffet-backed Nubank, Brazil’s largest digital bank by market volume, has announced it will launch its own cryptocurrency in the first half of 2023. The cryptocurrency, which is to be known as Nucoin, will run on the Polygon blockchain.
In a press release posted Wednesday October 19, Nubank explained that Nucoin will provide discounts and other perks to holders and will function as, “a new way to recognize customer loyalty and encourage engagement with Nubank products.”
Nubank Goes Deeper into Crypto
This isn’t Nubank’s first foray into crypto. Earlier this year, the bank started to dabble in Web3 by offering crypto trading services to its customers in partnership with the crypto trading platform Paxos.
The announcement that Nubank now plans to launch its own cryptocurrency marks a significant deepening of its interest in crypto.
Before the launch of Nucoin next year, Nubank plans to select 2,000 customers to test the token and provide feedback and guidance on its development.
Nubank Believes in Blockchain
Nubank’s General Manager for Nucoin, Fernando Czapski explained that the bank believes blockchain has excellent potential, saying:
“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.”
Fernando Czapski, General Manager for Nucoin at Nubank
Other large players in the finance sector have also been making announcements recently which demonstrate their belief in crypto’s potential. Just days ago, Mastercard announced its new Crypto Secure program in partnership with Paxos, which aims to make it easier for banks and other financial institutions to offer crypto trading services to their customers, a move that could potentially boost mainstream adoption of crypto.