Nubank ends Nucoin trading to shift focus on rewards program

Nubank, one of Latin America's neobanks, has announced it will terminate trading of its in-house cryptocurrency, C, as part of a shift towards using it for an internal rewards and benefits program for its customers.

The decision was communicated to users via email, explaining the changes and outlining options for current Nucoin holders.

The bank, which surpassed 100 million customers in May, aims to repurpose Nucoin to enhance customer engagement through its new program.

In the email, Nubank informed users that Nucoin trading would end in 15 days.

Users holding more than 100 reais (approximately $17.64) in Nucoin have until December 9 to exchange it for bitcoin or USDC (CRYPTO:USDC), a dollar-pegged stablecoin.

Those with less than 100 reais or those who do not complete the exchange before the deadline will retain their Nucoin holdings and benefit from the upcoming rewards system.

Nubank explained the decision to end trading was to protect users from potential market volatility due to the announced changes.

"To protect you and all participants from potential volatility in the market value of Nucoins due to potential reactions to this update, we have chosen to suspend your trading immediately," the bank stated.

Going forward, Nucoin will be used exclusively for redeeming benefits across various products and activities offered by Nubank, including discounts at Nu Shopping and access to exclusive brand experiences.

Nubank also mentioned that it would distribute prizes to some of the 16 million Nucoin holders as part of the revamped rewards system.

Nubank first entered the cryptocurrency space in 2022 and launched Nucoin in March 2023 as an airdrop for its customers, integrating it into a cashback program.

By January, Nucoin had already recorded over half a billion transactions.