Nexo and Mastercard launch ‘world first’ crypto-backed payment card
Nexo, one of the largest lending institutions in the digital finance industry, and global payments company Mastercard have teamed up to launch a credit card backed by crypto assets. DiPocket, electronic money firm, is Nexo’s card issuer.
Press release says that the Nexo Card is linked to a crypto-backed credit line, which allows cardholders to use their digital assets as collateral rather than selling them. The credit line is dynamic and can use multiple assets as collateral, including but not limited to Bitcoin, Ethereum, and Tether.
Antoni Trenchev, Co-founder and Managing Partner at 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. This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.”
The Nexo Card is the first card in the world that allows users to spend without having to sell their digital assets. It doesn’t have a minimum payment requirement or monthly maintenance fees. The users can add the card to Apple Pay or Google Pay, as well as receive cashback in either BTC or NEXO tokens.
This collaboration signals the latest move by crypto and major financial networks to join forces as digital assets become more mainstream. Earlier, Visa approved the launch of similar payment solutions with several companies, including Binance, Bakkt, BlockFi and CryptoSpend.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.