Crypto lender Nexo said that it has teamed up with global payments company Mastercard to launch on 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 that the card, available in selected European countries initially, allows users to spend without having to sell their digital assets such as bitcoin.
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. This allows investors to spend up to 90% of the fiat value of their crypto assets. Nexo said that the card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month.
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. Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships said that Mastercard recognizes that digital assets are revolutionizing the financial landscape. Electronic money firm DiPocket is Nexo’s card issuer.