%Cryptocurrency lender %Nexo has teamed up with leading credit card company %Mastercard ($MA) to launch the first crypto-backed payment card.
Nexo said the card, available in selected European countries to start, allows users to spend money without having to sell their digital assets such as %Bitcoin ($BTC), which are used as collateral to back the credit that’s provided.
The new payment card is linked to a Nexo-provided, crypto-backed credit line and can be used at 92 million merchants worldwide where Mastercard is accepted, allowing investors to spend up to 90% of the fiat value of their cryptocurrency assets.
Additionally, the card charges no fees to users, and there are no restrictions on how much a customer can spend or withdraw from the open credit line. Interest is only paid on the amount of credit actually used.
Interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or below, said Nexo in a news release. Electronic money firm %DiPocket is Nexo’s card issuer.
Analysts say the new payment card is another sign that cryptocurrencies and digital assets are becoming mainstream.