India's First Crypto Bank Launched

Mumbai-based entrepreneurs Varun Deshpande, Ratnesh Ray and Siddharth Verma, whose product Nuo Bank launched first time in India.

The product uses cryptocurrency and blockchain to replicate a bank that will have a decentralized, global and transparent cryptobanking platform.The startup has got seed funding from PayU India CEO Amrish Rau and managing director Jitendra Gupta, who have together invested $250,000 in the company. 

Nuo Bank will essentially offer about 20% of its 1 billion tokens, called Nuo Coins, to customers, the value of which will be connected to smart contracts. These contracts will entail that up to 25% of the revenue that the bank makes should be reserved for these tokens. 

“Instead of offering a fixed interest rate, we are making customers a part of the bank’s growth. These tokens can be sold on exchanges or used within the Nuo Bank ecosystem for transactions,” said Deshpande, who, along with Ray and Verma, had earlier founded BeeWise, a financial identity platform. 

The app’s peer-to-peer lending facility will allow users to pledge Etherium-based tokens and borrow money from a lender, who will be another customer of the bank. Nuo Bank marks the first crypto investment by Rau and Gupta, who, since the acquisition of their fintech company Citrus Pay in 2016, are heading PayU India. 

Nuo Bank is giving 100 tokens each to the first 10,000 users. Deshpande said they have already registered 5,000 customers in the first 36 hours. 

The bank will generate revenue from the transaction fees, or merchant discount rate ( MDR) on its payments products as well as a share of the premium from its peerto-peer lending business.


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