Crypto lender Nexo has partnered with payment major Mastercard and DiPocket to introduce a crypto-backed Mastercard card that allows users to spend without having to sell their digital assets.
Dubbed Nexo Card, the new offering is linked to Nexo-provided, crypto-backed credit line and allows the cardholders to use their digital assets as collateral.
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According to the company, the cardholders will be able to use multiple assets, such as Bitcoin, Tether, and Ethereum, as collateral across more than 92 million merchant sites globally.
The company is launching Nexo Card in select European markets, having wrapped up a successful partial roll-out earlier this year.
DiPocket will act as Nexo’s card issuer for the new offering in Europe while Mastercard will offer its technology and payment network to support the card.
Nexo co-founder and managing partner Antoni Trenchev said: “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.
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By GlobalData“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.”
According to Nexo, the card requires no minimum repayments, monthly, or inactivity fees. Additionally, the users will not have to pay FX fees for up to 20,000 euros per month.
The launch comes amid increasing collaboration between crypto and incumbent financial firms to tap the growing popularity of digital assets.
Mastercard Crypto and Blockchain Products and Partnerships head Raj Dhamodharan said: “Mastercard believes that digital assets are revolutionising 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.”
Nexo is planning a number of upgrades for the card, including debit-type card functionality. It also plans to expand the offering globally.
