Nubank’s board of directors has authorized the fintech company to issue Nucoin tokens from the Cayman Islands.
In October, the institution announced the creation of the digital currency, which is part of its new blockchain and crypto-assets initiative in LatAm.
Fernando Czapski, one of the co-founders of Nucoin, will be responsible for the issuance process on behalf of Nubank, including the pre-issuance operations, such as the creation of cryptographic keys and the execution of smart contracts, among other tasks related to this project.
Polygon Labs, the software house that will provide the technological infrastructure for the fintech project, is based in the Cayman Islands, where digital assets will be issued.
The studio works on creating solutions using Polygon, a blockchain network that operates as a kind of auxiliary to ethereum.
A blockchain-based customer loyalty program
Nucoin will be the basis for a rewards program in which Nubank customers will earn tokens when making purchases and will be able to exchange them for “discounts and other advantages.” The new loyalty program is expected to be launched later this year.
Nucoin units are expected to be distributed free of charge in the first half of 2023 to digital bank customers in Brazil, Mexico, and Colombia.
The distribution, known in crypto circles as airdrop, has also been authorized by the company’s board in the United States. However, the criteria for user receipt of the asset have not yet been disclosed.
Introducing crypto to 75 million people in LatAm
Nubank has about 75 million customers across Latin America, and in June last year, it launched the offer to buy and sell and store bitcoin, USDP, and ethereum, in a joint project with Paxos.
The fintech has a cryptocurrency trading platform with more than 1.8 million Brazilian clients in this segment.
Recently, the adoption of the crypto market has increased considerably among LatAm fintechs. And companies like Mercado Livre have been investing in their cryptocurrencies, as has Nubank.
In August last year, the financial arm of Mercado Livre announced the launch of Mercado Coin, which grants access to various benefits on the company’s platform, as a customer loyalty program.
Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.
He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.