Nubank Chooses Polygon Blockchain for Releasing Loyalty Tokens
On October 19, Nubank, a Brazilian fintech bank, revealed the minting of the Nucoin token on the Polygon blockchain, clearing the door for a reward scheme for its 70 million consumers across Latin America. The business stated that the token would be accessible in the first half of next year, and that it will reward customers ’ loyalty and participation with banking products and services at no charge to its customers.
The tokens are redeemable for bonuses and rebates on certain items. The general manager of Nucoin at Nubank, Fernando Czapski, claimed, “This initiative is yet another stride forward in our conviction in the tremendous potential of blockchains and our desire to further promote adoption, progressing beyond the buying, sale, and maintenance of cryptos in the Nu app.”
Beginning this month, around 2,000 customers will be asked to join a discussion on the initiative’s specifics, including the decentralized application development process and Web3 capabilities. Czapski said, “We chose to include a group of consumers in this co-creation procedure in order to develop our solutions prior to its public release and to guarantee that the application meets our clients’ forecasts and demands.”
Sandeep Nailwal, co-founder of Polygon, stated, “One of the biggest digital financial organizations in the world giving its native cryptocurrency is a significant testimony to the benefits blockchain and cryptocurrency can provide.”
In May, the bank entered into a collaboration with Paxos to enable its clients to buy, sell, and retain cryptocurrencies through its app, a step intended at broadening and enhancing access to cryptocurrencies, eradicating intricacies and friction for clients to buy, retain, and sell virtual currencies via the bank’s app, and avoiding the need for a new account or funds to be transferred.
In 2022, Warren Buffett’s Berkshire Hathaway disposed of a part of its Visa and Mastercard holdings and expanded its stake in Nubank by acquiring $1 billion worth of Nubank shares after liquidating $3.1 billion worth Visa and Mastercard equities together.