Nexo, a leading cryptocurrency lender, has created an official crypto-backed Mastercard card that enables customers to pay for services using cryptocurrencies such as Bitcoin (BTC) without selling their crypto.
Nexo has worked with Mastercard and peer-to-peer payment startup DiPocket to introduce the Nexo Card, a crypto card that enables users to use their cryptocurrency as collateral rather than selling it, the company declared on Wednesday.
The card is connected to a Nexo-provided, crypto-backed credit line, which enables the use of a variety of assets as collateral, including but not limited to Bitcoin, Ether (ETH), and the USDT stablecoin.
“The Nexo Card is powered by Nexo’s crypto-backed credit lines, which means that purchases are funded from your available credit line while your digital asset portfolio stays intact,” a Nexo spokesman told Cointelegraph. The spokesperson highlighted that the collateral is subject to repayment in accordance with Nexo’s terms and conditions.
According to the company, the Nexo Card’s credit line begins and remains at 0% annual percentage rate, making it the first crypto-backed Mastercard credit card. Additionally, the card has no minimum payback and waives foreign currency expenses on purchases up to 20,000 euros ($21,700). As with standard Mastercard credit cards, the Nexo Card is available in both virtual and physical form and integrates directly with Apple Pay and Google Pay.
Nexo predicts that the Nexo Card will be accepted by 92 million retailers globally that accept Mastercard, enabling investors to spend up to 90% of their cryptocurrency’s fiat value in seconds without selling any of it, the statement states.
Nexo claimed the card is immediately available in “certain European markets.” Nexo cards are offered to citizens of 29 countries, including Belgium, Cyprus, the Czech Republic, Finland, France, Germany, and the United Kingdom, according to the company’s website.
Antoni Trenchev, co-founder and managing partner of Nexo, highlighted the importance of the new product launch in fostering synergy between the current financial network and digital assets.
“This one-of-a-kind product will enable millions of individuals, first in Europe and then globally, to spend instantaneously without giving up the potential of their cryptocurrencies, providing an unparalleled level of daily use for the emerging asset class,” he said.
Raj Dhamodharan, Mastercard’s head of crypto and blockchain technologies, reaffirmed the company’s commitment to the cryptocurrency market, stating:
“Mastercard thinks that digital assets are reshaping the financial environment, and we are pioneering innovation via initiatives like as our collaboration with Nexo, which provides customers with new and unique options for paying for and activating their crypto holdings.”
Nexo began development on a MasterCard-branded crypto collateral-based card in August 2019, as previously reported. Earlier this year, the business completed a phased rollout of the Nexo Card in key European nations. Nexo also announced a significant relationship with Fidelity Investments’ crypto division, Fidelity Digital Assets, last year to work on crypto custodial, product, and loan services for institutional investors.