Innovation in the crypto industry is synonymous with daily routine, as newer and unique ideas pop-up every day. However, some stand out due to their scope of usability, which makes them successful, at least at the beginning.
One such development seems to be popping out of Ripple’s stable, where XRP backed crypto start-up Nexo has launched a debit card which allows users to make payments via cryptocurrencies, without actually spending it. The MasterCard powered debit card helps users get real-time crypto loans by putting the tokens as collaterals. The concept is both unique and looks extremely usable at face.
Crypto debit cards have significantly grown in popularity in the last few months, as they help users to actually make use of their assets, which generally remain more rigid than liquid. Unlike Nexo’s card, other crypto debit cards convert crypto to fiat on a real time basis for making payments at merchant stores. On the other hand, Nexo takes the game a step ahead and collateralizes the amount of crypto swiped for purchase, which allows users to keep their tokens while paying the loan later.
In its official statement, the company said,
When using the Nexo Card to purchase goods and services, you actually pay using your Nexo flexible open-ended revolving credit line that is backed with your crypto holdings and thus not selling any of them, which is giving you the freedom to spend today and sell your holdings whenever you want in the future to pay back the loan.
This loan giving the capability of the Nexo Card make it more of a credit card than a debit card, also the first in the world of crypto. Nexo itself is a crypto finance start-up, which allows users to avail instant loans by keeping their crypto holdings as collaterals. The Ripple backed start-up is part of the Credissimo Group, and a decade-old FinTech group spread across Europe. Since its inception a couple of years ago, Nexo has disbursed over $700 million in crypto collateralized loans to more than 200,000 customers.