19.04.2022 Finance Luxembourg Tech

Nexo introduces the first cryptocard

As cryptocurrencies grow as a generalized method of payment, companies need to adapt to this upcoming change in the economy. In this context, Nexo has announced its partnership with Mastercard and DiPocket to introduce the first crypto-backed card. Nexo is a DeFi crypto lending platform and exchange system with which you can trade, borrow, lend or spend cryptocurrencies.

The launch of the first crypto-currency-backed card represents a milestone for the financial and digital fields. The Nexo card, available only in several European markets – including Luxembourg – for now, enables its users to use their cryptocurrency as collateral instead of selling it. This way, the credit line remains dynamic and different crypto-currencies can be used, such as Bitcoin (BTC) or Ethereum.

Nexo’s release discloses three other key features of this card. Indeed, eligible customers can benefit from a zero cost credit as long as they meet a maximum 20% loan-to-value (LTV) ratio. In addition, the Nexo card offers instant crypto cashback on every purchase, paid in BTC or the institution’s native NEXO token. This means that cardholders can get up to 2% “free cryptocurrency”, while retaining ownership of their digital assets.

Finally, the card is available in both virtual and physical formats and also integrates Apple Pay and Google Pay. It is also mentioned that “cardholders can add the Nexo Card to their preferred mobile wallet from the Nexo Wallet App with a few taps.” Nearly 92 million stores, where MasterCard is already accepted, will allow payments made with the Nexo card.

Antoni Trenchev, co-founder of Nexo, said:

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.

This breakthrough demonstrates that the use of crypto-currencies is growing rapidly, gradually taking its place alongside fiat currencies. The cryptorace is just beginning. So far, the Nexo card is available for traders located in the United States, South Africa, Singapore, Hong Kong, India, France, Italy, Denmark, United Arab Emirates, Luxembourg, Qatar, to name a few.


Credits: Nexo