Nexo card allows users to spend while ‘hodling’ their crypto assets
Cryptocurrency lending firm Nexo Financial is rolling out its flagship crypto-backed Mastercard card in select European markets.
For the launch, Nexo has teamed up with Mastercard and the P2P payment startup DiPocket to allow its card users to spend without having to sell their crypto holdings. Instead, cardholders can use up to 90 percent of the fiat value of their digital assets as collateral to get access to a crypto-backed credit line at 0% interest.
The crypto lender says the credit line it offers is dynamic and can use one or multiple assets as collateral, including but not limited to Bitcoin, Ethereum, and Tether. All purchases are deducted automatically from the user’s available credit line while his portfolio remains intact.
The Nexo Card is accepted by over 92 million merchants and at over 1 million ATM machines worldwide, or wherever Mastercard is accepted.
In addition to the benefits of a prepaid Mastercard, the cardholders can earn instant crypto cashback, paid out in Bitcoin or in Nexo’s native NEXO Token, with every purchase or ATM withdrawal.
Crypto cards are becoming the norm
The card requires no minimum repayments, monthly, or inactivity fees, as well as no FX costs for up to €20,000 per month. Nexo also touts other benefits including tax savings as without selling your crypto no taxable event will occur.
Antoni Trenchev, Co-founder and Managing Partner at Nexo, commented: “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. 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.”
Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships, added: “Mastercard believes that digital assets are revolutionizing 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. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
Specially issued crypto cards are becoming the norm that is quite popular since they allow users to cash out their digital assets and spend them at thousands of credit card-accepting merchants worldwide. These cards resolve one of the greatest drawbacks of cryptocurrencies, which is the inability to use them in everyday life with the same ease as traditional currencies.