Today, the digital bank Nubank announced plans for a Nucoin cryptocurrency. The platform, with 70 million customers in Brazil, Mexico and Colombia, plans to provide tokens as rewards to customers, allowing them to get discounts and other benefits.

Initially, it is selecting 2,000 clients to create a web3 community to shape the creation of the cryptocurrency. In 2023, the token will be distributed free of charge to all customers. However, in the early days, it will not be tradable on a crypto exchange, but there are plans to do so in the future. Nubank already offers cryptocurrency trading as part of its solution.

The digital bank will use the public Polygon blockchain for the tokens.

In August, MercadoLibre, Brazil’s leading online retailer, announced similar plans for MercadoCoin.

In Japan, the largest bank, MUFG, recently launched a wallet for utility tokens that retailers can use to earn rewards. Belgium’s KBC Bank introduced its Kate Coin as part of a loyalty program. Bakkt, founded by the operator of the New York Stock Exchange, ICE, is one of the biggest advocates of using cryptocurrencies for rewards.

Meanwhile, Brazil’s securities regulator CVM has issued guidance on what types of crypto assets are considered securities. Its security concept is inspired by the American Howey test. The is based on whether there is an investment of money in a joint venture with the expectation of profit from the efforts of others.