Nexo and Mastercard Lunch crypto-backed payment card

Cryptocurrency lender Nexo said it has partnered with global payments company Mastercard to launch what is known as the world's first "crypto-backed" payment card. This shows the latest move in crypto and mainstream financial networks to join forces as digital assets become more mainstream.

Nexo said that the card is only available in some European countries initially and allows users to spend without having to sell their digital assets. The card is linked to a credit line and can be used at 92 million merchants worldwide where Mastercard is accepted, which allows investors to spend up to 90% of the fiat value of their crypto assets.

Unlike traditional credit cards, there is no limit to the amount of money a customer can spend or withdraw on the open credit line and interest is only paid on the amount of credit actually used. Interest rates for customers who keep their loan-to-value ratio below 20% will remain at 0%. Nexo’s card issuer is the electronic money firm, DiPocket.