Nubank touts cryptocurrency and explores web3. What does it mean?
Nubank this week unveiled its own cryptocurrency and said it plans to explore the potential of web3 and blockchain, joining the growing group of financial institutions seek to reap the benefits of the technology.
Nubank plans to make its Nucoin available in the first half of 2023 to clients in Brazil, in a bid to compete in the field of virtual assets. It is
following the lead of firms such as Mercado Libre, which in August presented Mercado Coin in Brazil. Latin America’s largest economy is emerging as a bubbling crypto laboratory.
The digital bank will design its crypto asset in partnership with Polygon, a blockchain and web3 development platform, and include the crypto coin in its rewards programs. “This project is another example of our belief in the transformative potential of blockchain technology and further democratizing it, going beyond buying, selling and holding cryptocurrencies in the Nu app,” said the head of Nucoin, Fernando Czapski, in a statement.
Although cryptographic technology has been permeating the fintech and traditional banking product suites, references to web3 — a concept that’s still in development — are less common. The basic idea is to create a virtual economic exchange system based on tokenized assets.
Nubank joins the likes of Starbucks, Robinhood and Stripe, which use Polygon’s platform to develop decentralized services.
“Brazil is one of the largest and most profitable markets at a competitive level,” Juan Frers, a partner overseeing technology at crypto consultancy Beps Global Consultores, tells iupana. “That’s why different exchanges or cryptocurrency exchanges have chosen to compete
It’s a trend that we will surely be hearing more about.
“It’s essential to understand that the current cryptocurrency market is at a critical moment […] the centers of [crypto] multinationals are mostly in Europe and the United States. But it’s emerging markets, both African and Latin American, that could be the summit of the future,” adds the analyst.