CRYPTO lender, Nexo has teamed up with global payments company, Mastercard MA.N to launch what it calls the world’s first “crypto-backed” payment card.
This signals the latest move by crypto and incumbent financial networks to join forces as digital assets become more mainstream.
Nexo said the card allows users to spend without having to sell their digital assets such as bitcoin, which are used as collateral to back the credit granted.
Most traditional credit cards are unsecured and have a set credit limit. However, this card is different.
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, allowing investors to spend up to 90% of the fiat value of their crypto asset.
“The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month,” Nexo said.
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. Additionally, interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or below.
Mastercard’s head of crypto and blockchain products and partnerships, Raj Dhamodharan said Mastercard recognizes that digital assets are important as it is revolutionizing the financial landscape. – Reuters
