Coinbase and Cardless Unveil Stablecoin-Backed Credit Card
Coinbase and Cardless have developed a credit card that lets some stablecoin holders use USDC on Coinbase as collateral. The product is aimed at applicants who may not qualify for a traditional unsecured credit card.
What happened?
Coinbase and Cardless have developed a credit card that lets some stablecoin holders use USDC on Coinbase as collateral. The product is aimed at applicants who may not qualify for a traditional unsecured credit card.
Why it matters
Cardless has worked on card programs for brands including Qatar Airways and Alibaba. The company framed the new Coinbase product as part of a broader effort to make credit programs less dependent on traditional bank-centered systems and more adaptable for companies designing their own offerings.
Coinbase and Cardless are introducing a stablecoin-secured credit card designed for people who hold digital assets on Coinbase but cannot be approved for a regular unsecured credit card, according to CoinDesk. The product allows applicants to set aside part of their stablecoin holdings as collateral against the debt.
The launch matters because it points to another way crypto firms are trying to connect digital assets with everyday financial products. Rather than requiring users to sell holdings or rely solely on a conventional credit profile, the card uses stablecoin collateral as part of the approval structure.
Cardless co-founder Michael Spelfogel told CoinDesk that applicants come from different parts of the credit spectrum, including people early in their wealth-building journey who want to use crypto-linked financial products. Cardholders pay $49.99 for access to the card and continue earning yield on their sequestered USDC holdings, Spelfogel said.
The product extends an existing relationship between Coinbase and Cardless. The companies previously introduced a Coinbase-branded American Express card that offered up to 4% cashback in bitcoin, though Cardless declined to say how many cards had been issued.
Cardless has worked on card programs for brands including Qatar Airways and Alibaba. The company framed the new Coinbase product as part of a broader effort to make credit programs less dependent on traditional bank-centered systems and more adaptable for companies designing their own offerings.