All-in-one crypto platform Nexo has come out with a new card that allows its users to make crypto payments without selling their coins.
Nexo is known for having some of the best rates in the industry, offering users high APY on their holdings. The company’s new Nexo Card will act as a cryptocurrency credit card that lets cardholders make payments while using their crypto as collateral instead of selling it.
Nexo is partnering with financial giant Mastercard and peer-to-peer payments firm DiPocket for the new card, which will give users a crypto-backed credit line for multiple cryptocurrencies, including Bitcoin, Ethereum and USDT. The crypto-collateral is subject to repayments as per the firm’s terms and conditions.
A Nexo spokesperson told Cointelegraph:
“The Nexo Card functions through Nexo’s crypto-backed credit lines, which means that funds for your purchases come from your available credit line while your digital asset portfolio remains intact…
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.”
As of now, the card is available in 29 different countries in Europe, including the UK, France, and Germany.
Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships, said:
“Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
Nexo previously rolled out a pilot program of the service in a few European countries targeting a focus group that the firm says generated “extraordinary interest and transaction volume,” proving the use case and demand for the product.
The company says it plans on expanding the functionality of the card in the future, for example, enabling debit card-type transactions and other features, according to its press release.