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- Nexo introduces a crypto-backed payments card that would allow users to spend without selling their crypto assets.
- Nexo has collaborated with DiPocket and Mastercard for the project, giving access to 92 million merchants worldwide.
- With the partial rollout of the card completed this year, the card will be available in selected European markets.
Nexo, an all-in-one platform for storing digital assets securely, discloses a crypto-backed payments card using which users can spend without them having to sell their crypto assets.
The platform is introducing the card in collaboration with DiPocket, a corporate payment services provider, and Mastercard, providing access to 92 million merchants around the world.
According to Nexo, the card is the first of its kind to enable users to spend without selling their digital assets. With cardholders’ crypto assets as collateral, the card is linked to a Nexo crypto-backed credit line. Payment is processed via the credit line that is available in stablecoins and fiat.
The card will be available in selected European markets, with the partial roll-out of it having been completed this year. The firm refused to give further details.
Credit and Debits that are linked to crypto assets are set up in the crypto sector. However, a lot of users can delay due to the risk of losing gains in the crypto value. Nexo’s unique card could urge many to use crypto-backed cards frequently, in everyday transactions by reducing this risk.
Traditional credits more often than not are unsecured and come with a set credit limit.
However, Nexo claims that their crypto-backed card needs no minimum repayments, monthly, or inactivity fees. For up to 20,000 euros per month, there will be no FX fees.
Besides, there will also be customers who will also have no restrictions on spending or withdrawing from the open credit line. In addition, the interest will be levied only on the amount of credit that is actually utilized.
For customers who maintain a loan-to-value ratio of 20% or below, the interest will remain at 0%.
Head of Crypto and Blockchain products and partnerships at Mastercard, Raj Dhamodharan said, Mastercard acknowledges the revolution crypto assets are bringing to the financial landscape.
Further, the card can be linked to both Google Pay and Apple Pay.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
