Nexo & Mastercard Teamed Up To Launch ‘World First’ Crypto-Backed Payment Card | CryptoGazette
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The mass crypto adoption is going great and the latest moves made by giant players confirm this.
Mastercard and Nexo team up for crypto-backed payments card
Crypto lender Nexo has recently partnered with global payments company Mastercard (MA.N) to launch on Wednesday what it calls the world’s first “crypto-backed” payment card.
It is safe to say that this is the latest move by crypto and incumbent financial networks to join forces as digital assets become more mainstream.
As the press agency reuters stated, Nexo said the card, available in selected European countries initially, allows users to spend without having to sell their digital assets such as BTC, which are used as collateral to back the credit granted.
Most traditional credit cards are unsecured and have a set credit limit, accoridng to the same reports.
92 million merchants will accept the crypto card
The card is linked to a Nexo-provided, crypto-backed credit line and can be used at 92 million merchants worldwide where Mastercard is accepted.
More than that, it’s al;so important to note that this is allowing investors to spend up to 90% of the fiat value of their crypto assets, Nexo said.
“The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month,” Nexo said.
Another issue that is worth noting is that there are no restrictions on how much a customer can spend or withdraw from the open credit line and interest is only paid on the amount of credit actually used.
Also, it’s important to higlight that the interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or below.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.
The mass crypto asdoption is going great despite the volatility in the crypto markets.
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