Nexo, the crypto credit provider, has joined the ranks of the companies providing physical cards, only this offering comes with a twist – you won’t actually be spending your crypto. The Nexo card, which will launch later in 2019, is Mastercard-branded, will be accepted everywhere Mastercard is, and will be manageable through the Nexo mobile app, providing instant credit to users without them having to sacrifice their tokens.
Nexo’s Expanding Business Model
Nexo provides collateralized loans to customers based on the value of the crypto they deposit onto the platform, which is locked up during the period of the loan and unlocked once it is repaid, or the fiat value of the collateral has increased enough to cover the loan.
According to Nexo co-founder Antoni Trenchev, crypto entrepreneur Brock Pierce has used this system to his advantage by mortgaging a house in Amsterdam through a $1.2 million Nexo loan, which, due to the rising value of BTC since he took the loan, has meant he hasn’t needed to make a single repayment.
Now however, customers can make micro-loans through the Nexo card for instant purchases, much like a regular credit card, borrowing against their own assets rather than the bank’s.
Instant Credit and Cashback
The ability to spend money in shops, restaurants, and online without having to sacrifice your tokens is a real game-changer for the crypto card industry. Advertising for the card doesn’t make it clear whether customers will have to convert their crypto on the app before they pay, which is a major bugbear of many crypto card users – Coinbase’s card is the only one currently able to do this.
There is however a very attractive cashback feature, up to 5% for every purchase, and there are no monthly management or foreign exchange fees. More will be known when the card gets closer to launch, but in principle this could be a great alternative to the phalanx of crypto cards that cost you crypto upfront – and if Bitcoin moons, you’re laughing!
The Nexo Card is here – the world’s first card that allows HODLers to spend the value of their assets without selling them.
We are confident that you will enjoy using the Nexo Card as much as we enjoyed creating it for you.
Get early access now!https://t.co/GI6mUHji1X— Nexo (@NexoFinance) August 6, 2019
