Polygon Partners With South American Fintech “Nubank” For The Creation of a New Cryptocurrency

Nubank – the largest digital bank in South America – is a Brazilian corporation that was founded in 2013 by Colombian David Vélez, Brazilian Cristina Junqueira, and American Edward Wible.

Since its foundation, Nubank quickly became Brazil’s most popular digital bank, overthrowing giants like Santander and Itau, and even the country’s state banks: Banco do Brasil and Caixa Federal.

Nubank officially launched its public IPO offering on the NYSE on December 9, 2021, valuing the firm at US$45 billion, making it (at the time) the most valued digital neobank in the world.

The bank raised $820 million in seven rounds of investment in less than ten years of its existence, including a new investment of $400 million in its newest F-Series.

The fintech startup has already surpassed the 12-million customer milestone, making it Brazil’s sixth-largest financial institution.

Putting all of this into account – the announcement that such a big player in the world’s financial sector will introduce a new cryptocurrency is huge news for the crypto community.

Introducing “Nucoin”

Nubank partnered with layer-2 blockchain Polygon in order to create “Nucoin” – Nubank’s native cryptocurrency.

During the official launch, the Nucoin token will be distributed for free to the whole digital bank’s client base. The event has yet to be scheduled, although it is expected to take place at some point in early 2023.

The primary goal of this new cryptocurrency is to serve as the foundation for the bank’s benefits program, which it intends to extend. Customers who accumulate Nucoins can use them to get discounts on Nubank products and services.

Fernando Czapski, the project manager behind “Nucoin” claims that the token will serve as a “measure” of client’s fidelity, and also a new way to offer and promote the institution’s digital products.

“This project is a step we take because we believe in the life-changing potential of Blockchain technology,” Czapski said. “and to further democratize it, going beyond the purchase, sales, and maintenance of cryptocurrencies in our app.”

Nubank And Cryptocurrencies

The digital bank is known as one of the largest proponents of cryptocurrencies in Latin America.

In June, Nubank presented a feature that allowed Brazilian users to buy and sell Bitcoin and Ethereum. This initiative introduced cryptocurrencies to Nubank’s 42 million Brazilian clients. Since then, over 2 million Brazilians were able to purchase cryptocurrencies in Nubank’s application.

The launch of the private token is another step forward for Nubank in the cryptocurrency space, which began in May of this year when the bank invested 1% of Nu Holdings’ (Nubank’s stock) in bitcoin.

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