Italian luxury sports car maker Ferrari has started accepting cryptocurrency as payment for vehicles in the United States, with plans to expand the offering to Europe amid rising demand from wealthy clients, the company announced on Wednesday.
Ferrari already accepts Bitcoin, Ether and USDC in the United States. The Italian carmaker said it is looking to eventually accept cryptocurrencies in additional jurisdictions.
The Italian sports car maker said it would roll out the new payment method in European dealerships starting in late July.
“The entry into the European market follows the successful launch of this alternative payment system in the United States less than a year ago, to support dealers in better addressing the evolving needs of its clients,” Ferrari said in a statement.
“By the end of 2024, Ferrari will expand cryptocurrency transactions to other countries in its international dealer network, where cryptocurrencies are legally accepted,” the company added.
Ferrari accepts Bitcoin in the US
When it began accepting cryptocurrency payments in the US, Ferrari partnered with BitPay to enable transactions in Bitcoin, Ethereum and the so-called stablecoin USDC.
BitPay then converts cryptocurrency payments into traditional currencies on behalf of Ferrari dealers to protect them from price fluctuations. Customers do not incur any fees or surcharges.
“This will help us connect to people who are not necessarily our clients but might afford a Ferrari,” the automaker’s marketing director, Enrico Galliera, said at the time.
Galliera did not disclose how many sales the company expects from crypto payments but noted that Ferrari’s order books are full well into 2025.
The Italian carmaker has faced criticism alongside other automakers for the high carbon emissions of its powerful gasoline vehicles. But Galliera said Ferrari remains committed to its target of achieving carbon neutrality across its value chain by 2030, aided by new software and increased use of renewable energy sources.
Ferrari plans to roll out crypto payment options in Europe within the first quarter of 2024. The company sees strong interest in both regions and will subsequently expand the offering to other markets where crypto is legal, including the Middle East and Africa.
How Ferrari’s embrace of crypto payments is a game-changer for Nexo (NEXO)
This strategic move not only underscores the growing acceptance of digital assets but also enhances the market prospects for crypto lenders like Nexo (NEXO).
Ferrari’s expansion into cryptocurrency payments reflects a broader trend of integrating digital assets into traditional sectors.
The Italian automaker’s decision to accept crypto for high-end sports cars signals a significant step towards mainstream adoption of digital currencies.
This development is particularly noteworthy for Nexo, a prominent cryptocurrency lending platform that has been facilitating crypto-backed loans since 2018.
Nexo’s role and market position
Nexo stands out in the cryptocurrency lending industry with its automated crypto-backed loan services. Users can deposit a range of accepted assets—such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP)—as collateral and obtain loans in stablecoins or fiat currency.
The platform is renowned for its advanced blockchain technology, designed to maximize the utility and value of cryptocurrencies.
Nexo has also made strides in expanding its service offerings. In 2022, it launched Nexo Ventures, an investment branch that has already amassed a portfolio of over 60 enterprises.
The platform has managed approximately $130 billion in assets for over 6 million clients globally, solidifying its position as a leading player in the crypto lending market.
Impact of Ferrari’s move on Nexo
Ferrari’s embrace of digital currency payments is expected to increase demand for crypto lending services, benefiting platforms like Nexo.
By enabling customers to purchase luxury items without liquidating their digital assets, Nexo is well-positioned to attract a new segment of affluent crypto enthusiasts.
The luxury market, which includes high-end cars and real estate, represents a growing opportunity for crypto-backed loans.
The cryptocurrency lending market is currently valued at over $10 billion, with projections indicating it could reach $800 billion by 2030.
This anticipated growth presents a significant opportunity for Nexo and other players in the sector.
