What is NEXO’s crypto-backed credit card? How is Mastercard involved?

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What is NEXO’s crypto-backed credit card? How is Mastercard involved?

What is NEXO’s crypto-backed credit card? How is Mastercard involved?
Image source: © Alexanderushkevich | Megapixl.com

Highlights

  • Nexo (NEXO), a blockchain-based lending platform, offers instant cryptocurrency-backed loans. 
  • The platform currently has US$12 billion of assets under management and four million users worldwide. It supports more than 38 cryptocurrencies. 
  • On Wednesday, it announced the launch of the Nexo Card in partnership with Mastercard and DiPocket.

The Nexo (NEXO) crypto token rose 0.37% to US$2.31 at 9:23 am ET on Wednesday after it announced the launch of Nexo Card in partnership with Mastercard and DiPocket. DiPocket is the card issuer, and Mastercard is the payment network provider. After the announcement, Mastercard Incorporated (NYSE: MA) stock was also up 1.55% to US$351.16 at 9:46 am ET.

It is the first crypto-backed credit card in the European Economic Area (EEA). It will give users access to more than 92 million merchant sites worldwide using their cryptocurrencies.

Nexo Card is linked to the Nexo-backed crypto instant credit line. It allows users to spend without selling their digital assets. The funds come from the user’s available credit line, but the portfolio remains intact—the cryptos in the portfolio work as collateral for spending their value at the merchants. Users can have one or multiple cryptocurrencies and stablecoins as collateral and pay up to 90% of their crypto value through Nexo Card.

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The cardholders’ benefits include up to 2% crypto rewards paid in BTC or NEXO as per loyalty tier, 0% APR on crypto credit, instant access to the credit line and borrowing rates, no monthly fees, no annual or monthly inactivity fees, no monthly minimum repayments, free virtual card, 10 free ATM withdrawals, etc. 

Also Read: Why is NEAR Protocol (NEAR) crypto rallying?

What Is Nexo (NEXO)?

Nexo is a blockchain-based lending platform that offers instant cryptocurrency-backed loans. Users deposit coins such as Bitcoin (BTC), Ether (ETH), XRP (XRP) etc. and get loans in fiat currency or stablecoins. 

Launched in 2018, the platform currently has US$12 billion of assets under management and four million users worldwide. It supports more than 38 cryptocurrencies. 

Also Read: Why is Celer Network (CELR) crypto rising?

Data Source: coinmarketcap.com

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Nexo Token:

Some of the benefits of this ERC-20 based native token include discounts on accumulated interest on loans, interest on deposits, and dividends from Nexo’s profits. 

Nexo’s market capitalization is US$1.29 billion. Its circulating supply is 560 million out of the total 1 billion tokens. It can be traded on Hotbit, FTX, DigiFinex, and Bitget crypto exchanges. 

Also Read: Why is Polygon (MATIC) rising? Does it have a Robinhood connection?

Bottom line:

Nexo has also invested in RociFi, a decentralized zero and under-collateralized lending protocol. RociFi closed the US$2.7-million seed funding round in November 2021.  

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