Brazil's Nubank Extends Nucoin-Based Crypto Loyalty Initiative to 70M Customers
TL;DR Nubank, one of the largest digital banks in Brazil, has launched a loyalty program for its customers with its own crypto token Nucoin. The bank and Polygon developed the token, which will have 100 billion units. 80% of the tokens will be given to Nubank’s customers and other companies that could join the program in the future. Transactions will be carried out within the Nubank app.
One of the largest digital banks in Brazil, Nubank, has launched a loyalty program for its customers with its own crypto token Nucoin.
A report by Portal do Bitcoin states that Nucoin will have 100 billion units and an airdrop plan for Nubank’s loyal customers. Per the report, Nucoin will work as a points program but cannot be withdrawn to wallets outside the bank’s system.
Polygon, the company behind MATIC, developed Nucoin. According to the paper, 80% of the 100 billion Nucoins created will go to the customers. It includes Nubank’s customers and other companies that could join the program in the future.
Notably, Nucoin transactions will be carried out within the Nubank app in a manner akin to buying and selling cryptocurrencies. Nubank green-lit a trading outlet for Bitcoin and Ethereum back in May 2022. However, currently, there is no secondary market for the bank’s crypto token. Users can also not transfer the units to their outside personal wallets.
In October 2022, the Brazilian bank and Polygon announced the token with a pilot run of 2,000 users. It will now reportedly extend this to approximately 70 million customers in Brazil.
Nubank, the largest #FinTech institution in Latin America, joins a long list of global companies like Robinhood, Starbucks, & Stripe that choose Polygon as their entry point to Web3.
Nubank's goal is to develop a token economy to reward their most loyal customers with Nucoins. — Polygon (@0xPolygon) October 19, 2022
As part of the program, customers will reportedly have the option to freeze or even exchange their Nucoins for cash or other benefits in the future.
Neobank Reported Strong Q4 Figures
Customers will be able to receive coins in four different ways, according to Nubank: by receiving an initial airdrop, cashback, raffle tickets, and customer engagement. Last week, the Warren Buffett and Softbank-backed digital bank reported its fourth-quarter earnings on the back of robust customer demand.
In Q4, the digital lender’s gross earnings increased 137% to $578.3 million, reported Reuters.
(OFFICIAL) Buffett-backed Nubank's quarterly profit surges amid robust customer demand https://t.co/b8fkzVMdA3 pic.twitter.com/cl3oo5dM6B — Reuters (@Reuters) February 15, 2023
Founder and Chief Executive David Vélez said, “Despite the macroeconomic challenges of 2022, Nu was able to beat every key metric: maintained accelerated growth, gained share in products and markets,”
That said, the neobank has indicated in the past that it would introduce more cryptocurrencies, in addition to BTC and ETH, to expand customer trading options.