Coinbase (COIN) and Cardless unveil credit card backed by stablecoins
Cardless, a company known for providing credit cards for big brands like Qatar Airways and Alibaba, has recently collaborated with the popular crypto exchange Coinbase to introduce a new payment card specifically designed for stablecoin holders. This innovative product caters to individuals who may not qualify for a traditional credit card but have digital assets stored on Coinbase.
According to Michael Spelfogel, co-founder of Cardless, the Coinbase stablecoin-secured card allows users to use their stablecoin holdings as collateral against the credit card debt. This is particularly beneficial for those who are new to the world of cryptocurrency and are looking to build their wealth. Applicants from all credit backgrounds can apply for this card, which costs $49.99 and offers the added advantage of earning yield on their USDC holdings.
This new product builds upon the partnership between Cardless and Coinbase, which initially introduced a Coinbase-branded card in collaboration with American Express in September. The previous card offered up to 4% cashback in bitcoin, providing users with additional incentives for using the card. While the exact number of cards issued remains undisclosed, Cardless is confident in the potential of this partnership to revolutionize the credit card industry.
Traditional credit programs have often been criticized for their slow and inflexible nature, limiting the opportunities for companies to tailor credit offerings to their customers. Cardless aims to disrupt this system by providing a solution that empowers individuals with digital assets to access credit on their own terms.
Overall, the collaboration between Cardless and Coinbase represents a significant step towards bridging the gap between traditional finance and the world of cryptocurrency. By leveraging the power of blockchain technology and digital assets, this new payment card offers a unique and innovative solution for individuals looking to utilize their stablecoin holdings in a practical and profitable manner.
