Brazilian Nubank has abruptly halted trading of its Nucoin cryptocurrency, citing a need to protect users from potential market volatility.

Digital fintech company Nubank is closing its cryptocurrency operations, suspending all trading within its app immediately. In a recent announcement, Nubank stated its decision to cease the purchase and sale of Nucoin to “prevent market volatility.” Customers holding at least 1,745 Nucoins can redeem the token for Bitcoin or USD Coin until Dec. 9. Those who do not redeem their tokens by this deadline will still be able to use them for various in-app benefits.

“From now on, the ability to buy and sell Nucoins within the app will no longer be available. Trading has been suspended, and Nucoins will only be used for redeeming benefits and products within the app.”

Nucoin was launched on Polygon in late 2022 as part of a reward program intended to offer customers various perks, including discounts and special benefits. While the exact reason behind the move remains unclear, the sudden policy shift comes amid increasing scrutiny over Nubank’s financial health, with concerns about rising non-performing loans and asset quality.

The bank’s portfolio of troubled loans has reportedly reached levels “above industry norms,” and while its stock has surged by over 60% this year, some analysts consider it overvalued. This context may provide insight into the decision to halt Nucoin trading.

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