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Mexicans can put their cryptocurrencies to a new use: using them as collateral for a credit card. This is thanks to the card launched this week by local startup Crecy, developed in collaboration Pomelo, a payment infrastructure and card issuance company from Argentina.
The launch was at the Bitcoin Embassy Bar, an iconic venue for crypto enthusiasts in Mexico City. Crecy co-founder and CEO Alexander Yaroshewski told Contxto that the idea is about leveraging digital currencies for different use. “We have always been involved in crypto, but we were holders before. We saw that people couldn’t unlock the value of their crypto without selling it. That came together with how problematic we noticed it was to get a loan in Latin America, and that’s how we created the card,” he said.
Those who want to obtain it must leave Bitcoin, Ethereum, Solana, Cardano, or Polkadot as collateral and will be able to access a line of credit ranging from 1,000 to 720,000 Mexican pesos (US$50 to US$35,000 approximately). Credit history is not reviewed; only the collateral is relevant, the amount of which must be at least twice as much as the credit line being requested.
In the Latin American market, there is a wave of cryptocurrency cards; however, these used to be debit cards, such as those launched by Ripio and Bitso with Visa and Mastercard, respectively. Or the prepaid crypto card of the Argentinean startup Belo.
Crecy in Mexico already provided credit using users’ crypto as collateral. The credit card is its second product and will operate from Monday, September 26, in digital format and physical format from the first week of October. The card has no fees or annuity.
Founded in 2020, startup Crecy has raised US$633,000 in pre-seed funding from Mucker Capital, Platanus Ventures, 500 Global LatAm, CAPEM, and angel investors.
Main image: Adobe Stock
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