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MasterCard (MA) unveils borrow-against-crypto credit card in EU

By Kevin Donovan

20:37, 14 April 2022

Cryptocurrency coins on a MasterCard credit card.
MasterCard lets users borrow against crypto holdings with new Nexo Card – Photo: Shutterstock

MasterCard (MA) is expanding its cryptocurrency offerings in a partnership with crypto lender that would allow users to borrow in fiat currency against crypto holdings and make purchases anywhere Mastercard is accepted.

Currently, the Nexo-branded MasterCard will only be used in Europe. Availability in the US is planned.

MasterCard stock traded roughly 2.18% higher Thursday, reaching a $362.89 per share high, versus Wednesday’s $355.14 closing share price. MasterCard closed the week at $359.36 per share. MasterCard stock trades on the NYSE under the ticker MA.

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MasterCard Inc. (NYSE: MA)

How it works

As opposed to a standard credit card, the Nexo MasterCard allows the user to borrow fiat currency against the cryptocurrency holdings, which may, in turn, be pledged as collateral for interest.

“If you have crypto on the Nexo platform earning interest, the interest you earn can offset the interest you pay on the credit line,” explained a source at Nexo who wished to remain anonymous. “The interest rate will depend on the crypto you pledge as collateral, if you hold 10% of your crypto assets in the NEXO (NEXO) token, you become a Platinum customer, and you can get a rate as low as 6%.”

The fiat currency loan would need to be 100% backed and overcollateralized by the user’s cryptocurrency holdings on the Nexo platform. Certain Nexo account holders are eligible for 0% interest, the company said in a statement.

Nexo/US Dollar (NEXO)

What if my HODLings don’t moon?

Should the value of the pledged cryptocurrency decline, or the user fail to repay the fiat currency loan, the user may pledge additional cryptocurrency collateral to cover the fiat loan.


0.60 Price
+3.460% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


66,751.30 Price
-0.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


19,526.60 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 7.0


3,506.58 Price
-0.090% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Just like any other overcollateralized crypto loan, a portion of your collateral will be liquidated if additional collateral isn't posted or a portion of the balance of the card isn't repaid,” the source added.

Nexo allows users to trade 39 different cryptocurrencies.

MasterCard’s crypto partnerships

This represents the latest move for Purchase, New York-based MasterCard, which has been ramping up its ability to process cryptocurrency payments and services.

MasterCard has inked numerous partnerships with cryptocurrency companies over the past year. Last December, MasterCard partnered with cryptocurrency companies Ava Labs, Envel, Kash, LVL and NiftyKey.

Last November, MasterCard partnered with cryptocurrency payment processing firm OLB Group, which facilitates cryptocurrency payments over buy-now-pay-later services such as Apple Pay and Google Pay.  

The month prior, MasterCard partnered with cryptocurrency rewards programme administrator Bakkt, to allow MasterCard users to convert earned spending loyalty rewards into cryptocurrency assets, which in turn, can be redeemed for fiat currency.

Markets in this article

Mastercard Inc (Extended Hours)
443.21 USD
-3.39 -0.760%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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