Nexo and Mastercard Partner to Deliver Crypto-Backed Card

Key Insights:

• Crypto lending platform Nexo launches crypto-backed credit cards with Mastercard and DiPocket.
• Users can spend at more than 92 million merchants without having to sell crypto.
• Technical indicators for NEXO are bullish, with NEXO sitting above the 50-day EMA.

Recently, the crypto world and mainstream payment platforms have formed stronger ties. Several leading crypto exchanges have partnered with Mastercard, Visa, and others to facilitate crypto purchases.

Several crypto exchanges also have credit card services, where users can purchase goods with crypto credit cards.

NFT marketplaces, such as Coinbase, have partnered with Mastercard to allow digital asset enthusiasts to purchase NFTs with fiat.

This week, crypto-lending platform Nexo (NEXO) offers crypto investors a new crypto payment offering.

Nexo Partners with Mastercard to Deliver Crypto-Backed Card

On Wednesday, crypto lending platform Nexo announced the launch of the Nexo Card. According to the announcement,

“Nexo is partnering with Mastercard and DiPocket to offer Nexo users access to crypto-powered liquidity across 92M+ merchant sites worldwide.”

Unlike other crypto platform credit cards, Nexo Card allows users to spend without actually having to sell digital assets. Available to users in Europe, the key features of the card include,

• Nexo Card is linked to a Nexo credit line enabling users to use crypto, such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), as collateral.
• No minimum repayments, no inactivity fees, and no FX fees for up to €20,000 per month.
• Crypto cashback of up to 2%, paid in Bitcoin or NEXO token.
• Available in physical and virtual form, users can add Nexo Card to Apple Pay and Google Pay.

Nexo cardholders will be able to spend up to 90% of the fiat-equivalent value of their crypto holdings.

While initially targeting European users, Nexo plans to offer the card worldwide.

Nexo Co-founder and Managing Partner Antoni Trenchev said,

“Launching the Nexo Card in Europe in partnership with Mastercard and DiPocket is a big milestone for us and the latest proof of the immense synergy between the existing financial network and digital assets. 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.”

Nexo is in Expansion Mode, Targeting Web3 and Brokerage Services

Earlier this year, Nexo joined a growing list of crypto platforms to come under the scrutiny of U.S regulators.

In February, Nexo announced voluntary changes to its Earn Interest Product in the U.S to comply with “newly-announced guidance.”

While under the watchful eye of U.S regulators, it has been a busy start to 2022 for Nexo.

This month, Nexo launched Nexo Prime. Nexo Prime is a proprietary prime brokerage platform for high-net-worth, corporate, and institutional investors. The platform gives investors access to the necessary tools to securely store, trade, borrow, and lend digital assets.

In March, Nexo launched Nexo Ventures, a $150m venture arm for acquisitions and Web3 investments. The venture arm aims to speed up the development and adoption of blockchain tech by investing in “early-stage retail and institutional projects synergetic to Nexo’s core businesses.”

Last year, Nexo partnered with Three Arrows Capital to offer NFT art financing services. Nexo’s NFT Lending & Art Financing Service offers crypto credit backed by NFTs. According to a December press release, Nexo started by accepting Bored Apes and CryptoPunks NFTs.

NEXO Price Action

At the time of writing, NEXO was up 0.04% to $2.428.

Technical Indicators

NEXO will need to avoid the $2.3770 pivot to move through the First Major Resistance Level at $2.504.

Broader market sentiment would need to improve to support a move through a Wednesday high of $2.454.

In the event of another extended rally, NEXO should test the Second Major Resistance Level at $2.581 and resistance at $2.600.

A fall through the pivot would bring the First Major Support Level at $2.301 into play. Barring an extended sell-off throughout the day, NEXO should avoid sub-$2.250. The Second Major Support Level sits at $2.173.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. As a result of the current breakout, NEXO sits above the 50-day EMA at $2.389. This morning, the 50-day EMA pulled away from the 100-day EMA, after having avoided a bearish cross. We also saw the 100-day EMA move away from the 200-day EMA; price positive.

NEXO would need to avoid the 50-day EMA to target April’s current high of $2.791.