Nubank is set to launch its loyalty token dubbed Nucoin on Polygon network in 2023 and will receive collaboration from 2,000 clients.
The creation of the Nucoin token on the Polygon blockchain was announced by Nubank, the largest fintech bank in Latin America with headquarters in Brazil, on October 19, paving the way for a rewards program for its 70 million customers in the region.
The token, according to the corporation, will be made available in the first half of 2023 and would reward customers for their involvement and loyalty with bank products without charging them any fees or fees.
The firm describes Nucoin as “a new way to recognize customer loyalty and encourage engagement with Nubank products” in a press statement. The tokens can be redeemed for rewards and discounts on selected products.
The managing manager of Nucoin at Nubank, Fernando Czapski, said:
“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 part of “adhering to common practices in blockchain projects,” Nubank said it would invite 2,000 clients to participate in a discussion group that would help guide Nucoin’s development. This phase’s concept, according to Nubank, “is to explore a decentralized process of product creation, characteristic of Web3,” rather than simply seek feedback.
The Warren Buffett-backed bank announced a partnership with Paxos to enable its customers to buy, sell, and store cryptocurrencies through the bank’s app in May. This was done to increase and improve access to crypto assets, remove complexity and friction for customers to buy, hold, and sell digital currencies through the bank’s app, and eliminate the need to open or transfer money using a new account.
The launch of a bank-issued cryptocurrency is not unique to Nubank. JPMorgan launched JPMCoin, a so-called stablecoin that maintains a one-to-one peg to the dollar, as its own currency. Unlike that coin, the value of Nucoin varies according to supply and demand, like the prices of coins like bitcoin and ether.