World’s first “crypto-backed” payment card launched by Mastercard and Nexo
Cryptocurrency lender Nexo said it has partnered with global payments firm Mastercard to launch what it calls the world’s first “crypto-backed” payment card.
It signals the latest move by cryptocurrencies and incumbent financial networks to join forces as digital assets become more ubiquitous.
Initially, the card, available in select European countries, allows users to spend without having to sell their digital assets, such as bitcoin, to be used as collateral, Nexo said. mortgage to repay the credit granted.
Most traditional credit cards are unsecured and have a certain credit limit.
The card is linked to a Nexo-powered line of credit, is crypto-backed, and can be used at the 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the value of their crypto assets, Nexo said.
“The card does not require a minimum, monthly return or inactivity fee. No foreign exchange fees of up to 20,000 euros per month,” Nexo said.
There is no limit on how much a customer can spend or withdraw from an open line of credit and interest is paid only on the amount of credit actually used. Interest rates remain at 0% for customers who maintain a loan-to-value ratio of 20% or less.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, head of crypto and blockchain product and collaboration at Mastercard.
Cryptocurrency firm DiPocket is the card issuer of Nexo.