- Crypto lender Nexo has partnered with a global payments company, Mastercard, to launch the world’s first crypto-backed payment card. There are no restrictions on spend and withdrawal of money
- DiPocket is Nexo’s next card issuer
On Wednesday, crypto lender Nexo said that it has teamed up with global payments company Mastercard to launch what it calls the world’s first crypto-backed payment card. This move signals the collaboration between cryptocurrency and the incumbents of the financial sector as virtual and digital assets become more mainstream.
Nexo said the card, to be available in selected European countries in Stage 1, will allow users to spend without selling their digital assets like bitcoin or Ethereum, usually used as collateral to support the credit earned. Most credit cards have set credit card limits and are, therefore, unsecured.
No spend or withdraw limit for investors
The card provided by Nexo, the crypto-backed option, it can be used across the 92 million merchants worldwide where Mastercard is being accepted. This will allow 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 fees for up to 20,000 euros per month.”
Furthermore, there are no restrictions on how much a user can spend or withdraw from this open credit line, wherein the interest is only paid on the amount of credit used. Currently, interest remains at 0% of customers who maintain a loan-to-value ratio of 20% and below.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.
DiPocket, the electronic money firm, is Nexo’s card issuer.