Nexo crypto lending platform has announced a partnership with Mastercard to release crypto-backed payment cards. The cards will allow users to spend the cryptocurrencies they own, bringing convenience to those who want to purchase goods and services directly with cryptocurrencies.

Nexo partners with Mastercard for crypto-backed card

The crypto-backed card will enable users to spend up to 90% of the fiat value of their cryptocurrencies. According to Nexo, the card will allow users to spend their digital assets without selling them.

Nexo has said that the card will be initially available to some European countries. However, it still has plans to roll out its use globally. The cards will be issued by DiPocket, an electronics money company.

The co-founder and managing partner at Nexo, Antoni Trenchev, noted that “this unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without giving up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for emerging asset class.”

Earlier this year, the crypto lending firm announced a partial launch of the Nexo card available in select European countries. The cards targeted a focus that records increased interest and high transaction volumes. The product will be rolled on a full scale once a high demand is established.

Mastercard’s endeavour into crypto and blockchain

Mastercard has made several initiatives that have enabled the payments card giant to achieve a substantial reach in the buzzing crypto space. Last October, Mastercard announced a partnership with Bakkt to allow merchants and banks on its payments network to access cryptocurrencies.

“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,” said Mastercard’s head of Crypto and Blockchain Products and Partnerships.

Last year, Mastercard also announced that it was developing its infrastructure to make it ready to issue central bank digital currencies (CBDC). Visa has also made a similar announcement, with the two payment giants looking to retain and attract a new user base once CBDCs become mainstream.