Coinbase, Cardless Launch Stablecoin-Backed Credit Card for Crypto Users

Key Takeaways:

• Coinbase and Cardless have launched a stablecoin-backed credit card that allows eligible users to secure credit using their USDC holdings as collateral.
• Cardholders continue earning yield on their locked USDC while accessing a line of credit, offering a new use case for stablecoin holders.
• The initiative aims to expand credit access for crypto users who may struggle to qualify for traditional unsecured credit cards.

Crypto exchange Coinbase and fintech company Cardless have unveiled a new stablecoin-backed credit card. The new product is designed for users who may not qualify for traditional unsecured credit products. The card enables applicants to use a portion of their USDC holdings on Coinbase as collateral for a credit line. According to Cardless co-founder Michael Spelfogel, the product is intended to serve customers across a broad range of credit profiles, including individuals who are early in their wealth-building journey but have accumulated digital assets.

Users to Keep Earning Yield on Locked USDC

A key feature of the new card is that users continue earning yield on the USDC set aside as collateral. Cardholders pay an annual fee of $49.99 to access the product while maintaining exposure to their stablecoin holdings. The model seeks to bridge the gap between digital asset ownership and traditional financial services, allowing crypto investors to unlock spending power without selling their assets.

Expanding the Coinbase-Cardless Partnership

The launch builds on an existing partnership between Coinbase and Cardless that began in September with the introduction of a Coinbase-branded credit card in partnership with American Express. That card offered rewards of up to 4% cashback in Bitcoin.

Cardless argues that traditional credit systems remain slow and inflexible, often limiting access for consumers whose financial strength may be reflected in digital assets rather than conventional credit metrics. The new stablecoin-backed card represents another step toward integrating crypto holdings into everyday financial products.