Nubank, a primary neobank operating in Brazil, has announced the launch of its own cryptocurrency, ‘Nucoin’, developed from and released on the Polygon Network.
Backed by American investor and business magnate Warren Buffet, Nubank was launched in 2014 with a suite of progressive financial services. In mid-2022, the neobank introduced crypto purchasing and trading options to its mobile app. In October of the same year, Nubank announced that it will be developing its own cryptocurrency in partnership with Polygon, citing the “transformative potential of blockchain technology.”
Brazil has been on track with its crypto adoption since the country’s congress passed a crypto bill to establish a firm a regulatory framework for the country’s burgeoning crypto industry. There have also been initiatives for creating the country’s central bank digital currency (CBDC). As a leading neobank in the country, Nubank’s latest venture into further solidifying its foothold in the crypto space will likely pick up pace as it expands its clientele.
According to Nubank, the Nucoin cryptocurrency will be introduced to its customers through a mass airdrop, 80% of which will be directly provided for existing users. Nubank claims to have a customer base of roughly 70 million users, of which 2 million have been engaged in crypto activities. The launch price for Nucoin has not been disclosed by the neobank.
The launch of Nubank’s cryptocurrency marks a milestone for financial technology and blockchain technology adoption in the region. Nubank plans to use Nucoin as a means of payments within its ecosystem, allowing customers to pay for Nubank services with its own native token issued over the Polygon network. Nubank’s customers will also be able to purchase, sell, and store Nucoin through the Nubank mobile app. Reports from the region indicate that Nubank will be developing more functionalities for Nucoin, with staking and cash exchanges in the pipeline.
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