Mastercard and Nexo Unveil New “Crypto Backed’ Credit Card

Mastercard and Nexo have joined together to bring a new type of credit card that doesn’t rely on credit scores and credit limits to function. Instead of traditional methods, the credit card will allow customers to borrow against the value of their crypto assets. As a result, Mastercard and Nexo can provide much more favorable terms for users.

In case you’re wondering, the new card doesn’t require a minimum monthly payment. Moreover, instead of credit limit, customers will be able to spend up to 90 percent of the value of their cryptocurrencies without actually selling the assets.

According to a report from Reuters, there’s no interest on credits used up to or below 20 percent loan to value ratio. As you can imagine, this new card will be useful for those looking to hold onto their crypto assets during an unforeseen financial need. As cryptocurrencies’ value fluctuates on a daily basis, the new card will give customers plenty of flexibility without worrying about their assets.

In addition to the other standard features, the Nexo card comes with a reward system. Customers will earn 0.5 percent in Bitcoin on different purchases or 2 percent if you switch the reward currency to NEXO.

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