Brazilian bank Nubank halts trading of its cryptocurrency

Fintech leader Nubank has announced that it will halt trading of its cryptocurrency Nucoin, a move that has raised questions about the bank’s financial stability.

Nubank policy change:

In a statement published on the bank’s blog on September 10, Nubank said that as of now, users will no longer be able to buy or sell Nucoin via the app.

The coin was launched in late 2022 on the Polygon blockchain as part of a rewards program aimed at providing multiple benefits to customers.

Nubank added that customers will still be able to exchange Nucoin for other cryptocurrencies such as Bitcoin or the digital dollar (USDC) until December 9, 2024.

The bank will also hold raffles with prizes of up to one million Brazilian reals for individuals who choose to redeem their coins.

While the exact reasons behind the decision remain unclear, the move comes at a time when the bank is under scrutiny over its financial health, amid growing concerns over rising non-performing loans and asset quality.

According to a Bloomberg report, although Nubank’s shares have risen more than 60% this year, some analysts have expressed reservations, suggesting that the stock may be “overvalued.”

The report notes that Nubank’s non-performing loans, which are more than 90 days past due,