Nexo, a cryptocurrency lender, announced a partnership with Mastercard to produce the world’s first “crypto-backed” payment card called Nexo Card on Wednesday.
Nexo, the world’s leading regulated institution for digital assets, today announced the launch of the Nexo Card, a first-of-its-kind crypto-backed Mastercard card, in a few European cities.
Digital assets become more popular, it is the latest step by crypto and established banking networks to link together.
Nexo has partnered with Mastercard and DiPocket for the launch, allowing its users access to cryptocurrency-powered liquidity across 92m merchant sites around the world, without having to sell digital assets such as bitcoin, which are used as collateral to back the credit issued.
DiPocket is Nexo’s card issuer for the new offering in Europe and Mastercard is the tech company and payment network for the new venture.
The card will allow investors to spend up to 90% of their crypto assets’ fiat value, according to Nexo.
There are no limits on how much a consumer can spend or remove from an open credit line, and interest is only charged on the credit that is spent. Customers with a loan-to-value ratio of 20% or less continue to pay 0% interest.
Features of The Nexo Card
Your Crypto Stays: The Nexo Card is linked to a Nexo-provided, crypto-backed credit line with a 0% APR that starts and stays constant. Instead of selling their digital assets, cardholders can utilise them as collateral. The credit line is flexible, and it can be secured by a variety of assets, including but not limited to Bitcoin, Ethereum, and Tether.
Zero Fees: There are no minimum repayments, monthly fees, or inactivity penalties with this card. For up to €20,000 per month, there are no FX fees.
2% Crypto Rewards: Every Nexo Card transaction includes an instant cryptocurrency payback, which can be received in Bitcoin or Nexo’s native NEXO Token. This implies that consumers not only keep ownership of their digital assets, but they may also earn up to 2% back in free bitcoin with each purchase, which appears in their Nexo account instantly.
Seamless Access: The Nexo Card has direct Apple Pay and Google Pay connections and is available in both virtual and physical forms. With a few taps on the Nexo Wallet App, cardholders can add the Nexo Card to their favourite mobile wallet. Additional virtual cards are provided free of charge.
Antoni Trenchev, Co-founder and Managing Partner, Nexo, commented, “Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets.”
“Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings,” added Raj Dhamodharan, Head of Crypto and Blockchain Products and Partnerships, Mastercard.