Nexo, a significant cryptocurrency loan company, has just launched its cryptocurrency-supported credit card in partnership with MasterCard and DiPocket (a peer-to-peer payment startup) since the project’s announcement in 2019. This new credit card allows users/cardholders to trade goods and services with crypto coins like Bitcoin and Ethereum without selling them.
The credit card is interconnected with a crypto-supported credit line provided by Nexo, enabling the use of diverse assets like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) as collateral. According to a Spokesperson for Nexo, “The credit card operates via the Nexo Crypto supported credit lines, meaning that money for buying goods and services comes from the available credit line with the Crypto asset value remaining untouched.” Furthermore, the spokesperson said that the collateral is liable to repayments in line with the terms and conditions of Nexo.
The company says that their card’s credit line begins and stabilizes at the zero percent annual percentage rate, and the product is the first they have ever made that is backed up by cryptocurrency. There are no necessary repayments needed by the card and no foreign exchange fees up to twenty thousand euros (or twenty-one thousand seven hundred dollars ). The Nexo card exists in physical and virtual forms like regular MasterCard cards, and its also accompanied by direct Google pay and Apple pay integrations.
Based on the announcement, Nexo hopes that their card would be deemed usable by ninety-two million merchants globally where MasterCard is allowed. This would enable Investors to use up to ninety percent of the monetary value of their cryptocurrency in a short time without selling it off.
Nexo said the card is now available in “certain European markets.” According to the company’s website, the Nexo card is only available to citizens of twenty-nine countries globally, including the United Kingdom, Cyprus, Finland, Belgium, Czech Republic, France, Germany, and others.
According to Nexo co-founder and managing partner Antoni Trenchev, the new product launch is critical for the synergy between the existing financial network and digital assets. Antoni Trenchev said that “this new development is a unique solution that will allow many people, first for European nations and all other nations of the world, to easily spend without having to worry about their crypto portfolio, thereby availing an outstanding daily utility for the burgeoning asset class.”
The Head of MasterCard crypto and blockchain technologies, Raj Dhamodharan, reiterated the company’s commitment to the cryptocurrency business. He said:
“MasterCard thinks that digital assets are transforming the financial environment, and we’re leading the way with programs like our partnership with Nexo, which gives users new and unique ways to pay for and activate their crypto holdings.”
From earlier reports, Nexo started working on a cryptocurrency collateral-based card created by MasterCard in August 2019. The Nexo Card was partially rolled out in several European countries earlier this year. In 2021, the company announced a significant partnership with the crypto arm of Fidelity Investments, — Fidelity Digital Assets, to provide institutional investors with cryptocurrency custodial, product, and lending services.