Nubank, one of the largest neobanks in Latan, announced on Tuesday that it will stop trading its nucoin cryptocurrency as it moves to using it as part of its internal rewards and benefits program for its customers. Users will be able to choose to exchange it for bitcoin or stablecoins by December 9.

Nubank Ends Nucoin Trading, Announces It Will Convert Its Use Case to a Reward System

Nubank, one of Latam’s largest neobanks, has announced that it will stop trading nucoin, its in-house cryptocurrency. The institution, which announced that it had reached over 100 million customers in May, announced the move as part of a revamp of its internal rewards system in an email to customers.

The email explained that the bank would stop trading in 15 days and that holders would be given two options with the update. They could trade their nucoins for bitcoin or USDC, a dollar-pegged stablecoin, until December 9 only if they had more than 100 reais ($17.64) worth of the currency. Those holding less than that amount or who did not complete the transaction before the deadline could hold onto those coins to collect future benefits from the redesigned rewards program.

Regarding the closure of nucoin's operations, the bank stated:

To protect you and all participants from potential volatility in the market value of Nucoin due to potential reactions to this update, we have decided to suspend your trading immediately.

Currently, Nubank claims that nucoin will be used exclusively to “redeem benefits in many products and activities offered by Nubank, such as discounts at Nu Shopping, access to brand experiences and more.” The organization revealed that it will award some of the 16 million nucoin holders.

The organization launched its cryptocurrency operations in 2022 and launched Nucoin in March 2023 as an airdrop for customers to use as part of a cashback program. By January, nucoin had recorded over half a billion transactions.

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