- Nubank will leverage Polygon technology to create their own loyalty tokens
- The bank announced that it will invite 2k customers to help develop the token ecosystem
- Amidst a bearish market, the launch of Nucoin and other adoption-related news has evoked hope for crypto enthusiasts
Nubank, a fintech organization in Brazil announced a loyalty rewards program with Nucoin as the key driver. This program will be extended to 70 million clients across Latin America.
The fintech org mentioned that the token will be launched sometime in the first half of 2023. Nucoins will be credited to users to acknowledge their loyalty and engagement with the bank.
Nucoin’s general manager Fernando Czapski stated, “This project is another step ahead in our belief in the transformative potential of blockchain technology and to democratize it, even more, going beyond the purchase, sale and maintenance of cryptocurrencies in the Nu app.”
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As of now, 2000 clients will be invited to discuss the development, features and pivotal web3 aspects of the Nucoin loyalty program. “We decided to bring a group of customers into this co-creation process precisely to refine our product ahead of the public launch, to ensure we get to a program that truly resonates with our customers’ expectations and needs,” Czapski added.
“One of the largest digital banking institutions in the world, offering its own cryptocurrency is a strong testament to the utility blockchain and crypto have to offer,” Sandeep Nailwal, founder, of Polygon, stated.
此举将为Nubank 七千多万用户打开通往 Web3 的通道🎉 https://t.co/5dQBgvaw00
— Polygon China 💚 (@0xPolygonChina) October 19, 2022
In May this year, the bank also established a partnership with Paxos for its customers to buy, sell and store crypto assets to boost crypto adoption for novices in crypto. This partnership was signed to make access to crypto easy and digestible for people.
Interestingly, Warren Buffet’s firm Berkshire Hathway – an American multinational conglomerate holding company with a market cap of $ 615.53 billion sold off its huge investments in Mastercard and Visa amounting to $3.1 billion in value. The firm invested $ 1 billion in Nubank later.
Nubank is not the first bank to debut in the world of crypto and web3. JP Morgan Chase – an investment banking firm launched its own crypto asset called JPM Coin. It is a stablecoin that aims to maintain its value pegged to the dollar. However, the JPM coin’s value fluctuates depending on the demand and supply equilibrium which is similar to ETH and BTC.
Since last year, an array of investment banking firms like Goldman Sachs, HSBC, Swedish Central Bank have expired web3 and crypto and have leveraged it to fix challenges in traditional finance.
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The role of blockchain technology in banking
The world has witnessed the potential of blockchain in different areas of banking. The technology is acting as a catalyst in reducing transaction costs, faster transaction clearing, and improving data verification processes.
JP Morgan’s Liink platform is one of the milestones that the banking industry has seen so far. The platform enables seamless data transfer to clients. The platform has been adopted by 200+ banks. The key reason for the staggering adoption of crypto and web3 is due to the absence of a set regulatory framework.
Additional Read: Mastercard partners with Paxos to bring Crypto Trading to Banks