Crypto.com, previously known as Monaco is preparing to roll out the first cryptocurrency Visa Prepaid card in Asia starting in Singapore over the next two months. The platform plans to issue up to 100,000 prepaid cards after applying for licenses to operate. Crypto.com also has plans to get money lending licenses to enable it venture into new areas such as provision of crypto-backed money lending services.
According to the company’s CEO, Crypto.com aims at providing liquidity to cryptocurrency holders and improving trust in digital assets. SCMP reports that holders of the crypto prepaid cards and its wallet will be able to take out loans backed with Bitcoin and the platform’s own native currency, MCO.
The stored-value facility, which is required for the operation of the prepaid cards, was granted by Singapore’s monetary authority (MAS). Crypto.com is partnering with Wirecard Singapore PTE LTD to issue the prepaid cards. The CEO commented that the inspiration for the project comes from the desire to disrupt the credit card industry which he claims has been derailed by unethical practices by banks which offer unsecured and risky loans to consumers at interest rates they cannot afford.
Crypto.com’s model will allow cryptocurrency holders fiat currency with a 40 – 60% loan limit on the value of the cryptocurrencies held. The digital currency must be pledged to the lender as collateral for the facility. This is aimed at reducing risk therefore enabling for competitive interest rates. Although credit history will not be considered for loan acquisition, users will be required to undertake Know Your Customer (KYC) procedures.
The prepaid cards will be linked to fiat currencies and crypto wallets that support major digital assets including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), BNB and its own native coin MCO. A total of 7 fiat currencies will be supported including the UD dollar, Singapore and Hong Kong dollars.
Since its ICO last year where about USD 26.7 million was raised, the MCO token has grown to be listed on 21 crypto exchanges. It’s currently trading at USD 4.40, falling 12% in the last 24 hours. It has however gained 2.58% against Ethereum over the same period.
MCO ranks 88th by market capitalization with a valuation of USD 69.5 million. Trade volume hit an a high for the month reaching USD 12.4 million yesterday and USD 10.79 million today, a 74% and 51% increase from September 3rd respectively.