NewsletterJust-In: Nexo Launches Crypto-Backed Credit Card With Mastercard
Crypto lender Nexo said on Wednesday it was partnering with Mastercard and DiPocket to launch a credit card backed by cryptocurrency. The card will be launched in select European markets.
The card will be backed by a user’s crypto holdings as collateral. Nexo said in a press release the card will allow users to spend up to 90% of the fiat value of their crypto, without selling any of it. The card can use multiple crypto assets as collateral.
The launch further positions Nexo as an intermediary between decentralized and traditional finance. The firm offers crypto lending and deposit services, as well as traditional services such as fiat exchange and insurance.
Nexo’s offering a first among crypto cards
While crypto-linked credit cards are not a novel concept, Nexo’s offering is the first to use a user’s crypto holdings as a direct collateral, as well as a gauge for their credit line. By contrast, most conventional credit cards are not linked to any collateral, and usually have a set credit limit.
Nexo’s card is linked to a crypto-backed credit line that provides a 0% annual percentage rate for select customers. The card is also usable with over 92 million merchants worldwide that accept Mastercard.
Nexo said the card requires no minimum repayments, and charges no inactivity fees. It will also pay out crypto rewards for each transaction – a common theme among crypto cards.
DeFi and TradFi grow closer
Nexo’s offering highlights the narrowing gap between decentralized finance and its traditional counterpart. Payment stalwarts such as Visa and Mastercard have already tied up with several crypto platforms, including Gemini and BlockFi, to provide crypto-linked credit services.
Mastercard believes that digital assets are revolutionizing the financial landscape.
-Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships
Mastercard is also no stranger to the crypto world, having recently filed trademarks related to NFT offerings and the metaverse. The card operator had earlier this year teamed up with Coinbase to provide payment services for the exchange’s upcoming NFT marketplace.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
