In this virtual bank, your savings are stored in crypto format on a blockchain , and instead of interest on your savings, you get a virtual share in the revenue of the bank.This is an unconventional concept developed by Mumbai-based entrepreneurs Varun Deshpande, Ratnesh Ray and Siddharth Verma, whose product Nuo Bank went live this week.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.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.“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.“We invested with the rationale that if crypto(currency) can challenge fiat currency, then there would be a crypto bank required and credit would also become borderless.This is an experiment in a space, and if it takes off, we want to be a part of it,” said Rau. “The team also wants to make the product available globally, which is exciting,” he said. 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.Even as cryptocurrency seems to have become synonymous with uncertainty, entrepreneurs across the globe are using the technology to innovate, especially around financial services.Last month, Bank of America said cryptocurrencies pose a threat to its business.In a regulatory filing, the bank said “clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies,” adding that this could “negatively affect our earnings.”