Brazil’s most prominent digital bank Nubank is launching its cryptocurrency – Nucoin. The Warren Buffet-backed bank has revealed its plans to launch the crypto in the first half of 2023. The bank will engage some customers in a group forum to guide the coin’s development.
Nubank’s Foray Into The Crypto Space
The cryptocurrency market continues downward, with most coins flashing red on Friday. The market cap has slid below Wednesday’s mark at $920 and is now down 1.47% in the past 24 hours to stand at approximately $907 billion. Major cryptocurrencies are bleeding, with Solana’s 6% losses on the day leading the losses among top-cap cryptos. The largest cryptocurrency by market capitalization, Bitcoin (BTC), is off 0.85% daily to trade at $19,015.70 at press time, according to data from CoinMarketCap.
This paints a grim picture of the digital asset market, which is expected to keep investors away. However, it has been said that crypto winter is the right time for builders to develop great projects with real utility while jokers and scammers fall along the way.
The announcement, made in a press release on October 19, revealed the bank’s plans to launch the “creation of Nucoin, its cryptocurrency on the Polygon blockchain network.” According to the press statement, the company touts Nucoin as its goal to “offer customers benefits such as discounts and perks as they accumulate Nucoins.” The bank also added that the token, which is “expected to be launched in the first half of 2023,” is a new way to recognize customer loyalty and encourage engagement with Nubank products.”
Nubank Partners With Polygon To Develop Nucoin
Nubank will partner with Polygon to develop the cryptocurrency. Polygon is an Ethereum scaling blockchain that improves the functionality of the Ethereum network while retaining decentralization and the base layer’s security. Nubank and Polygon have also agreed to use the blockchain company’s technology and technical support to ensure “the evolution and expansion of the new cryptocurrency,” the statement said.
In the statement, Nucoin managing director at Nubank Fernando Czapski said that the crypto’s launch was a significant milestone for the bank, which beliefs in the transformative potential of blockchain technology. He noted:
“We are opening the door to the future. Nucoin is a new way to recognize customer loyalty and foster further engagement with Nubank products. 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.”
Polygon co-founder Sandeep Nailwal praised the step taken by the bank to launch its cryptocurrency, saying:
“The fact that one of the largest digital banking institutions in the world is offering its cryptocurrency is a strong testament to the utility that blockchain and crypto have to offer. Nubank’s customer loyalty rewards program, powered by Polygon, will deliver the transformative benefits of blockchain technology to its customers while acknowledging the shift happening in the traditional financial space.”
The statement added that the bank will adhere to the standard practices of blockchain projects by inviting around 2,000 customers to “participate in the process and dynamics related to Nucoin.” The talks will also revolve around Nubank’s plan for Nucoin and its broader Web3 vision.
Nubank is not the first bank to announce plans to build its crypto. It follows the steps of other banking and payment companies that have decided to enter the crypto market. In October 2020, JPMorgan rolled out its cryptocurrency JPMCoin. A stablecoin pegged 1:1 to the U.S. dollar.
In October 2021, Mastercard launched Crypto Secure, a new tool aimed at helping card issuers prevent fraud involving crypto exchange platforms. Online payment companies like Robinhood and PayPal have allowed their customers to buy, hold and trade cryptocurrencies on their platforms.