According to Nexo, the card, which will initially be available in a few European countries, will allow users to spend their digital assets such as bitcoin without having to sell them.
On 20th April, Nexo, a cryptocurrency lender, announced a partnership with global payments company Mastercard (MA.N) to launch the world’s first “crypto-backed” payment card. As digital assets become more mainstream, it is the latest move by crypto and traditional financial networks to join forces. According to Nexo, the card, which will initially be available in select European countries, will allow users to spend without having to sell their digital assets, such as bitcoin, which are used as collateral to back the credit granted. The majority of 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 any of the 92 million Mastercard-accepting merchants worldwide, allowing investors to spend up to 90% of their funds.
“There are no minimum repayments, monthly fees, or inactivity fees with this card. There are no FX fees for transactions up to 20,000 euros per month.” Nexo stated as much. There are no limits on how much a customer can spend or withdraw from a credit line that is open, and interest is only charged on the amount of credit used. Customers who maintain a loan-to-value ratio of 20% or less continue to pay 0% interest.”Mastercard understands that digital assets are transforming the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.