Hong Kong Crypto Firm Rolls out Asia’s First Crypto-to-Fiat Visa Debit Card
Claimed as Asia’s first cryptocurrency Visa debit card, it offers crypto-to-fiat service in partnership with Germany’s Wirecard Bank. Five cryptos including BTC, ETH, LTC, MCO and BNB could be converted into fiat currencies including the US dollar, Singapore dollar and Hong Kong dollar. Kris Marszalek, co-founder and CEO of Crypto.com, said their product addresses the need for easy and secure crypto-to-fiat transactions and withdrawals.
“To holders of cryptocurrencies, having the peace of mind that you can readily convert back into fiat currencies and cash out is very important… Not all exchanges support crypto-to-fiat transactions, and even if you hold your digital assets at the exchanges’ wallet, the withdrawal process is also complicated. We believe our product addresses a real need, and enhances trust in digital assets,”
Over the next two months, the company will ship more than 100,000 cards to customers globally, starting with Singapore where the company has obtained a stored-value facility license from the Monetary Authority of Singapore (MAS).
Apart from crypto debit card business, the company also aims to disrupt the credit card industry. It is applying for money lending licenses in Singapore and Hong Kong in an effort to make an early foray into the cryptocurrency-backed money lending business. As Marszalek shows discontent with banks’ credit card business, criticizing
“The credit card business model is one that is bordering on unethical business, as banks make a big chunk of profit from people who cannot afford late fees. These people should not be given a credit card in the first place.”
To avoid credit risk from its borrowers, the company will lend borrowers only 40-60 percent of their pledged collateral in bitcoin or MCO.
Crypto.com, formerly knowns as Monaco, is a cryptocurrency wallet provider known for its crypto token MCO and a Visa debit card backed by cryptocurrency. The company has hit the headline a month ago in the crypto space for it purchased the highly sought-after domain name Crypto.com at an “unbelievable” price – might be worth between $5 and $10 million, while the domain’s previous owner had steadfastly refused to sell it to crypto companies for years.
The firm raised $26.7 million in token sales last year. Its token MCO is currently traded at $4.09, down 22% in 24 hours during today’s big crypto drop.