The Brazilian digital bank Nubank has launched its own cryptocurrency, Nucoin, which functions as a loyalty program and is free for customers. Developed in partnership with Polygon, the blockchain network behind the token MATIC, the project will create 100 billion Nucoins, with roughly 80% designated for end-users, including Nubank customers and other companies that may join the protocol later on.
According to Nubank, Nucoin transactions will occur within the Nubank app and will function similarly to buying and selling cryptocurrencies on the existing Nubank Cripto feature. There will be no secondary market, and it will not be possible to withdraw the units to a private wallet.
Although the project had been announced last year, the company has now officially launched the program for some of its roughly 70 million Brazilian customers. This move follows a similar initiative by Mercado Livre, which introduced a cryptocurrency-based point system last year.
Customers who hold Nucoins will have the option to freeze them to climb up the program’s tiers and unlock more benefits, such as earning more Nucoins or tickets to enter prize draws. Nubank stated that over time, customers who freeze their Nucoins will have access to additional benefits within the Nubank platform, as well as with external partners who may join the loyalty network.
The Nubank loyalty program will offer several ways for customers to earn Nucoins. These include receiving an initial airdrop of Nucoins in recognition of their previous history with the bank, participating in prize draws for up to 50 tickets in the first six months, receiving a fixed amount of Nucoins for every Brazilian real spent on Nubank debit and credit cards or any cryptocurrency available on the Nubank Cripto experience, and becoming active in the community and providing feedback on the future of the Nucoin protocol and product.
Nubank is a well-known fintech firm in Brazil and is the country’s largest digital bank. The company’s decision to launch its own cryptocurrency demonstrates its commitment to providing innovative financial products and services to its customers.
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