Crypto loans company Nexo has entered into a deal with MasterCard to roll out a co-branded crypto credit card, which is claimed to be the world’s first.
Nexo offers a fully automated Instant Crypto Credit Lines service which allows for crypto holders to borrow against a basket of digital currencies including Ripple (XRP), Bitcoin (BTC), Litecoin (LTC), Ether (ETH), among others.
Nexo also lets clients earn interest on fiat currencies like the British pound, US Dollar, Euro, and stablecoins.
The new co-branded card with Mastercard will help users spend the value of the digital assets held by them in the Nexo account. The digital assets could be cryptocurrencies, Nexo tokens, tokenized assets, utility tokens and VR/gaming tokens.
Additional credit will be automatically available on the card as and when cryptocurrency value increases. Users can clear their dues by paying back directly or by selling their holdings in future.
The crypto assets are secured by SEC-approved custodian BitGo, which provides cold storage wallets. These custodial assets are also covered for up to $100 million by the London-based insurance company Lloyd’s.
The crypto credit card, which makes payments in local currencies, neither charges any fees nor requires minimum monthly repayment.
