Cryptocurrency lender Nexo has teamed up with leading credit card company Mastercard (MA) to launch the first crypto-backed payment card.
Nexo said the card, available in selected European countries to start, allows users to spend money without having to sell their digital assets such as Bitcoin (BTC), which are used as collateral to back the credit that’s provided.
The new payment 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 cryptocurrency assets.
Additionally, the card charges no fees to users, and there are no restrictions on how much a customer can spend or withdraw from the open credit line. Interest is only paid on the amount of credit actually used.
Interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or below, said Nexo in a news release. Electronic money firm DiPocket is Nexo’s card issuer.
Analysts say the new payment card is another sign that cryptocurrencies and digital assets are becoming mainstream.
