Virtual asset service provider Nexo has launched a crypto-backed credit card service
It allows users to spend money and make payments while leveraging their cryptocurrencies as collateral
The feature is powered by a partnership with settlement giants Mastercard and DiPocket
European users will be first to receive access to Nexo’s latest service before the feature rolls out to global customers
Lithuania-based digital asset platform Nexo announced a virtual card service supported by a crypto-backed credit line. According to the statement released on Wedndesday (April 13, 2022), Nexo’s users in Europe will be able to finalize payments by using their cryptocurrencies and virtual assets as collateral.
Currently, the startup operates as a crypto lender and supposedly provides investors with high yields and earnings in strategic interest products. Also, Nexo is a regulated digital asset service provider.
Crypto Credit Card Allows User to Keep Their Tokens After Payments
Nexo users will have access to access to a credit line denominated in traditional fiat currencies like Euros and blockchain-powered stablecoins like USDC. Also, users will have the option to instantly spend up to 90% of the value of their digital tokens.
In addition, the new feature is facilitated by a deal with institutional payments portal DiPocket and global fintech heavyweight card provider Mastercard.
Speaking about the development, the company’s co-founder and managing partner Antoni Trenchev emphasized the need to equip investors with the tools to make payments without actually spending their crypto tokens. Trenchev added that:
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.
Nexo previously trialed a partial rollout of its crypto credit card in key European jurisdictions earlier in 2022. Moving forward, around 92 million merchants around the globe will support the new feature, thanks to the partnership with Mastercard and DiPocket.