Cryptocurrency News

Buffett-backed Banking Startup Nubank Will Launch Its Own Polygon-Based Cryptocurrency

By October 20, 2022 No Comments
Nubank cover image

Key takeaways:

  • The largest Brazilian neobank, Nubank, has announced it will be launching its own token early next year
  • Polygon-powered Nucoin will allow holders to benefit from exclusive perks and discounts
  • Nubank raised $3.9 billion from investors since its launch in 2013, with the largest investment amount coming from Warren Buffett’s Berkshire Hathway

Nubank’s crypto token is slated to launch in the first half of 2023

Brazil-based digital bank Nubank has announced it will be launching its own digital currency, called Nucoin, in the first half of next year. Nucoin will be powered by Polygon, a Layer 2 scaling solution for Ethereum, which is theoretically capable of processing 7,200 transactions per second (TPS). 

According to a press release, the neobank’s crypto token will enable Nucoin holders to benefit from various perks and discounts, providing encouragement for customers to use Nubank products. Initially, the token will be made available to 2,000 users. During the test period, Nubank hopes to build upon the customers’ feedback and “explore a decentralized process of product creation.”

Speaking about Nucoin and the crypto-focused loyalty program, Polygon co-founder Sandeep Nailwal remarked:

“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.”

Nailwal added that Nubank’s announcement signals the “shift happening in the traditional finance space.”

Warren Buffett’s Berkshire Hathway is the largest investor in Nubank 

This is not Nubank’s first foray into crypto – earlier this year, Nubank launched Bitcoin and Ethereum trading via the Paxos blockchain to huge success, having reached 1 million users within just one month of the initial launch. 

Founded in 2013, Nubank offers digital credit cards, transfers, and payment services to mostly Latin American customers. Per Crunchbase data, the digital banking startup raised $3.9 billion across 14 funding rounds so far. The biggest chunk of the total raised amount came from Warren Buffett’s Berkshire Hathaway, which was a lead investor in last June’s $750 million Series G round, and in February’s $1 billion post-IPO round.