The crypto exchange and lending platform Nexo is launching a crypto credit card backed by digital assets in partnership with Mastercard and DiPocket as part of what has been its latest effort to facilitate transactions by using cryptocurrencies.

In a press release published yesterday, Nexo deemed this innovative instrument as the first of its kind. It will function as a secured line of credit backed by the client’s assets held within the Nexo platform and the card will be accepted in any of the more than 90 million establishments that are currently powered by the Mastercard network.

DiPocket will act as the card issuer for this offering and the instrument will enable users to spend their digital assets without having to sell them.

The Nexo payment card will be initially available in Europe only and it will allow Nexo account holders to borrow funds at an entry 0% APR as long as they maintain a loan-to-value (LTV) ratio lower than 20%. The applicable APR for higher LTVs was not disclosed by the firm in this instance.

According to Nexo, users will be able to spend up to 90% of the fiat value of their crypto assets. Meanwhile, they also stated that there will be no FX fees for balances lower than €20,000 per month.

Crypto investors will not have to give up or transfer their crypto holdings to access the product, Nexo clarified, and the vendor plans to offer 2% cash-back rewards for every transaction. These rewards will be paid out in Bitcoin (BTC) or NEXO – the platform’s native crypto token.

Nexo said that it has already conducted a test pilot of this payment card in Europe and the results were quite pleasing as the limited group of users who had access to the beta product demonstrated “extraordinary interest” for the instrument.

In regards to the alliance, Mastercard’s Head of Crypto, Raj Dhamodharan, stated: “Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings”.

Meanwhile, Antoni Trenchev, the co-founder of Nexo, said: “This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class”.

What Are the Benefits of This Kind of Card?

Multiple companies within the crypto world have partnered with traditional financial institutions and fintech companies to facilitate transactions that involve the use of digital assets.

Liquidity and ease of use remain the most important barriers that crypto products must overcome to become widely adopted by the general public.

This alliance between Nexo, DiPocket, and Mastercard is facilitating the process of using crypto assets for making regular transactions such as buying groceries, apparel, or some coffee.

Other interesting collaborations between crypto and large financial networks include’s Visa debit card, Gemini’s credit card powered by Mastercard and Coinbase’s and BlockFi’s Visa payments cards.

The fact that users are not forced to sell their holdings to spend their assets to cover their living expenses is a particularly attractive feature as price volatility in the crypto market could lead to poorly timed transactions that can severely hurt the investor’s net worth unnecessarily.

That said, some more details about the inner functioning of these products remain relatively unclear such as what happens when the loan-to-value exceeds the 90% threshold and what is the applicable APR for loans that exceed the 20% quota mentioned by Nexo.

Crypto assets are highly volatile unregulated assets. Your capital is at risk.