Cryptocurrency lender Nexo said it has partnered with global payments firm Mastercard (MA.N) to launch what it calls the world’s first “crypto-enabled” payment card on Wednesday.
It marks the latest move by cryptocurrencies and mainstream financial networks to unite as digital assets become more mainstream.
The card, which will initially be available in select European countries, will allow users to spend without having to sell their digital assets, such as bitcoin, which will be used as collateral for loans, Nexo said.
Most traditional credit cards are unsecured and have a set credit limit.
Nexo said the card is linked to a crypto-backed line of credit offered by Nexo, available at 92 million merchants worldwide that accept Mastercard, allowing investors to spend up to 90% of the fiat value of crypto assets.
“The card requires no minimum repayments, monthly fees or inactivity fees. There are no foreign exchange fees for up to €20,000 per month,” Nexo said.
There is no limit to the amount a customer can spend or withdraw from an open credit line, and only the actual used credit line earns interest. Interest remains at 0% for customers with a loan-to-value ratio of 20% or less.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, head of crypto and blockchain products and partnerships at Mastercard.
