Nexo, a cryptocurrency lender company, has partnered with Mastercard to launch the world’s first “crypto-backed” payment card.
Why this matters: This is the first time a major crypto lender and credit card company have teamed up for a card that uses crypto instead of cash or credit.
Details: The card — which will be available in European countries to start — will give users a chance to spend money without selling off their assets, per Reuters.
- Instead, the digital assets will be used as collateral to back a credit limit.
- The card will be connected to a crypto-supported credit line, which can be used wherever Mastercard is accepted.
- There are no restrictions on how much someone can spend or withdraw from the credit line.
- Interest will be paid on the amount of credit used.
- There will be “no minimum repayments, monthly, or inactivity fees,” Nexo said, according to Reuters.
What they’re saying: “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,” said Antoni Trenchev, the co-founder and managing partner at Nexo, in a statement.
Of note: There will be a physical Nexo card available, but you can link a virtual card to your Apple Pay or Google Pay account, too, per PC Magazine.