Nexo’s Crypto Card Enables Users to Pay Without Selling Holdings
- Unlike other crypto cards that sell user’s holdings at the point of sale, Nexo Card uses a crypto-backed credit line that can use a number of digital assets as collateral.
- Launched in partnership with Mastercard and DiPocket, the card gives access to more than 92 million merchants, and offers a credit line that stays at 0% APR.
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Crypto loan company Nexo has launched a new crypto-backed card that allows users to pay for services with crypto without selling it, but rather use it as collateral, the company said in a press release shared with The Chain Bulletin on 13 April.
According to the announcement, the Nexo Card was launched in partnership with payments giant Mastercard and payment service provider DiPocket, which gives cardholders access to more than 92 million merchants around the world. Although Nexo is planning a global expansion for its card, for now it is only available to citizens of the European Economic Area (EEA), according to Nexo’s FAQ page. Antoni Trenchev, co-founder and managing partner at Nexo, said in a statement:
“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.”
The Nexo Card is reportedly the first to allow users to make purchases and payments without selling their cryptocurrency, but rather use it as collateral. It is connected to a Nexo-provided, crypto-backed credit line that can use a number of digital assets as collateral, including Bitcoin, Ethereum, Tether, and others.
The Nexo Card is available in both virtual and physical format, and also features Apple Pay and Google Pay integrations. In addition, the company says its credit line “starts and stays” at the 0% annual percentage rate, and that repayments of the credit do not take foreign exchange fees for up to 20,000 euros.
- Currently in its beta launch phase in Brazil, the Binance Card will allow its holders to make payments and purchases using 13 supported cryptocurrencies.
- Brazil has become the second country in Latin America to receive the product, following a similar announcement in Argentina in August 2022.
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- The probe into Nexo’s activities in Bulgaria was launched several months ago, after international services detected suspicious transactions aimed at circumventing Russian sanctions.
- Reports suggest that Nexo is also being investigated for allegedly committing major financial crimes, and participating in money laundering activities.
- The new program will see MasterCard act as a “bridge” between Paxos and financial institutions, allowing them to offer crypto trading services to their clients.
- The payments giant will also assist institutions with regulatory compliance and security, two reasons banks cite for avoiding the asset class.