Nexo, a digital asset management, has teamed up with Mastercard and DiPocket to develop a Mastercard-backed crypto card that will enable users to access a crypto credit line, using their digital assets as collateral.
The Nexo Card is a cryptocurrency-backed credit card that allows cardholders to use their bitcoin as collateral instead of selling it. Nexo has partnered with DiPocket to introduce the card, which will serve as Nexo’s card issuer in European markets.
Nexo co-founder and managing partner Antoni Trenchev called the Nexo Card launch a “big milestone” in a statement accompanying the announcement, adding that the partnership with Mastercard and DiPocket is “the latest proof of the immense synergy between the existing financial network and digital assets.”
Head of crypto and blockchain products and partnerships at Mastercard. “Digital assets are transforming the financial landscape,” Raj Dhamodharan said, adding that the card provided clients with “new and one-of-a-kind possibilities in how they pay and activate their crypto holdings.”
About the Nexo Card
The Nexo Card will not have any minimum repayments, monthly fees, or inactivity fees, according to the business. For up to €20,000 ($21,600) each month, there are no FX fees.
Furthermore, each Nexo Card transaction includes an instant crypto cashback feature that can be paid out in Bitcoin or Nexo’s native NEXO currency.
In other words, consumers will be able to earn up to 2% back in “free cryptocurrency” with each purchase, according to the business. The Nexo Card is compatible with Apple Pay and Google Pay, and it may be used at over 90 million retailers that accept Mastercard.
Nexo completed a trial rollout of the Nexo Card in a few European areas earlier this year, and according to the business, the experiment produced “exceptional interest” and “strong demand” for the device.