Brazilian digital lender Nubank to launch its own cryptocurrency (NYSE:NU)

Despite a bleak environment for the cryptocurrency market, Nubank, the Brazilian digital banking startup owned by Nu Holdings (NYSE:NU), is planning to launch its own digital token next year in the country, it said Wednesday in a blog post.

The lender’s token, called Nucoin, is currently in development phase and is expected to be rolled out in the first half of 2023 to its 70M users.

Around 2K customers will be invited to participate in an exclusive group to contribute their ideas regarding the Nucoin development, NuBank said, adding that Nucoins will be distributed to customers at no cost and used to offer discounts and perks.

Moreover, Nubank, which launched its crypto trading platform in recent months, said it partnered with popular blockchain company Polygon (MATIC-USD) to build Nucoin on the Polygon network, a layer 2 protocol that seeks to be a better version of ethereum (ETH-USD) in terms of faster transactions and greater scalability.

The token offering comes even as token prices change hands in depressed levels after huge drawdowns seen at the beginning of 2022. Bitcoin (BTC-USD) and ether (ETH-USD), the two largest coins by market cap, are both down over 70% from their November 2021 peaks in the wake of global monetary tightening, growing recession risks and slower economic growth.

In May, Nubank introduces bitcoin, ether trading on its platform.