Crypto lender Nexo and Mastercard have teamed up to launch the world’s first cryptocurrency-backed payment card.
Nexo said the card, which will initially be available in some European countries, will allow users to spend funds without having to sell their digital assets, such as bitcoin, which are used as collateral to secure the loan.
It is noted that the card will be linked to Nexo’s cryptocurrency-backed credit line and will be able to be used in 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their crypto assets.
Earlier it was reported that Mastercard Inc., one of the largest payment systems in the world, and Bakkt Holdings Inc., a company specializing in cryptocurrency, entered into a partnership in the field of cryptocurrency payments. This will make it easier for banks, fintechs and merchants to offer and accept crypto payments. Banks and other financial institutions that issue cards with Mastercard will also be able to issue crypto-currency cards, allowing users to make payments and earn rewards in Bitcoin.