The card is linked to a Nexo-provided, crypto-backed credit line and can be used at 92 million merchants worldwide where Mastercard is accepted
Crypto lender Nexo said it had teamed up with global payment company Mastercard to launch on Wednesday what it calls the world’s first ‘crypto-backed’ payment card.
It signals the latest move by crypto and incumbent financial networks to join forces as digital assets become more mainstream.
Nexo said the card, available in selected European countries initially, allows users to spend without having to sell their digital assets such as Bitcoin, which are used as collateral to back the credit granted.
Most traditional credit cards are unsecured and have a set credit limit.
The card is linked to a Nexo-provided, crypto-backed credit line and can be used at 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their crypto assets, Nexo said.
The card requires no minimum repayments, monthly, or inactivity fees. There are no FX (foreign exchange) fees for up to €20,000 (about $21,825) per month, Nexo said.
Nexo Co-founder and Managing Partner Antoni Trenchev said: Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets. This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.
There are no restrictions on how much a customer can spend or withdraw from the open credit line and interest is only paid on the amount of credit actually used. Interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or below.
Mastercard recognises that digital assets are revolutionising the financial landscape, said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.
