Pesto launches asset-backed Credit Card and new funding round

By Delisha Fernandes

Pesto announced the launch of its product, the Pesto Mastercard issued by Continental Bank, a credit card that allows customers to use valuables as collateral to obtain a credit card.

Consumers submit Pesto of their assets and are given a credit card based on its value, regardless of credit score. Over time, cardholders who often don’t qualify for unsecured credit cards can increase their credit score and eventually qualify for one. Pesto Mastercard offers rates similar to existing credit cards.

James Savoldellifounder and CEO of Pesto, said, “Our first product, Pesto Mastercard, offers interest rates at only a fraction of current alternatives, often 90% lower than many equivalent mortgage loans. This is a paradigm shift in the credit card market, with the potential to truly democratize credit. Pesto is on a mission to help all Americans find alternatives to high-interest loans by providing an easy way to secure liquidity and build credit through their assets without selling them.”

The company intends to use the funds to expand its customer base across the US, with an initial focus on Atlanta and Los Angeles. The company has raised funds from prominent investors, including; Active Capital, Plural, Sozo Ventures, Commerce Ventures, NJF Capital, Soma Capital, NOMO Ventures, Commerce Ventures, Human Capital, OVO Fund, OEL Ventures, Core Innovation Capital, Great Oaks VC, and Y Combinator.

“Existing loan products are not enough to help these consumers become more financially free,” said Nathan Morgan, Founder & CEO of Continental Bank’s. “We are passionate about supporting Pesto’s mission to make lending more affordable, secure and accessible.“

Pesto was founded in 2020 to provide Americans with a solution that offers a path to rebuild or build credit at a lower rate. It will continue to build its product to enable customers to leverage their assets for credit, thus creating a pathway to a more financially secure future.