Nexo, a Swiss platform that provides instant cryptocurrency-backed loans, has launched a cryptocurrency Mastercard in some European markets, the company announced Wednesday (April 13).
Nexo Card partnered with Mastercard and DiPocket, a London-based eWallet, providing customers with access to crypto-powered liquidity at more than 92 million eCommerce sites around the globe. The card allows users to spend without selling their digital assets, according to the announcement.
Nexo collaborated with DiPocket, Nexo’s card issuer for the offering in Europe, while Mastercard will provide the payment network for a variety of features.
The Nexo Card is linked to a crypto-backed credit line from Nexo with a zero-interest rate. Cardholders can use their digital assets as collateral rather than selling them. The credit line can use multiple assets as collateral, including bitcoin, Ethereum and Tether, the announcement stated.
There are no minimum repayments, nor monthly or inactivity fees. In addition, there are no foreign exchange (FX) fees for up to 20,000 euros (about $22,000) monthly, and there are 2% crypto rewards.
“This unique product will allow millions of people … 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, co-founder and managing partner at Nexo, in the announcement.
Last month, Nexo introduced Nexo Ventures, a Web3 investment and acquisition fund.
Read more: Today in Crypto
Nexo plans to invest $150 million in long-term commitments in a range of early-stage retail and institutional projects in five areas, including Web3, decentralized finance (DeFi) innovation, metaverse, non-fungible tokens (NFTs) and GameFi, payments and trading infrastructure and compliance solutions.
In February, Nexo stopped paying interest on new deposits and planned to offer a new product.
See more: Crypto Lender Nexo Stops Interest on New Deposits
The announcement came after a U.S. Securities and Exchange Commission (SEC) settlement with BlockFi over a similar product.
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