Mastercard has entered the crypto arena by teaming up with Crypto Lender Nexo 

Mastercard has entered the crypto arena by teaming up with Crypto Lender Nexo 

April 15, 2022 Off By Mags Smith

The Nexo Card is the world’s first Crypto-backed payment card that allows hodlers to spend without selling their cryptocurrency holdings. Traditionally when these assets are sold and converted to fiat it is a taxable event. However, as this is effectively a crypto backed loan you can spend your crypto without triggering a taxable event.

On launching the card Antoni Trenchev, Co-founder and Managing Partner at Nexo, said that “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 currently available in the following countries:

  • Austria
  • Belgium 
  • Croatia
  • Cyprus 
  • Czech Republic 
  • Denmark
  • Finland
  • France 
  • Germany 
  • Greece
  • Hungary 
  • Iceland
  • Ireland 
  • Italy
  • Latvia 
  • Liechtenstein 
  • Lithuania
  • Luxembourg 
  • Malta
  • Netherlands 
  • Norway
  • Poland
  • Portugal 
  • Romania 
  • Slovakia 
  • Slovenia 
  • Spain
  • Sweden 
  • United Kingdom

Unlike most traditional credit cards the Nexo Card is linked to a crypto-backed credit line that allows investors to spend up to 90% of the value of their crypto assets and can be used anywhere that accepts Mastercard (92 million merchants worldwide to be exact).

With no minimum repayments and no restrictions on how much a customer can spend or withdraw, the Nexo Card is a very lucrative option for hodlers looking to gain access to their funds without actually selling their assets. Especially with interest rates as low as 0% for customers in their Platinum tier who maintain a loan-to-value ratio of 20% or below.

“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.” said Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships

This is just one of the latest moves by traditional financial services to move into the cryptosphere and we would expect to see many more partnerships of this nature as digital assets become more mainstream.