Coinbase and Cardless Launch Stablecoin-Secured Credit Card
Cardless, a credit card platform that works with brands like Qatar Airways and Alibaba, has partnered with crypto exchange Coinbase to offer a stablecoin-secured credit card. The card targets users who cannot obtain traditional unsecured credit but hold digital assets on Coinbase. Cardholders pledge their USDC stablecoins as collateral, paying a $49.99 fee while continuing to earn yield on the locked funds. According to Cardless co-founder Michael Spelfogel, the product serves individuals across the credit spectrum, including those new to cryptocurrency who want to build credit through their crypto assets. The card is built on a previous partnership from September 2024, which introduced a Coinbase-branded American Express card with up to 4% cashback in bitcoin. Cardless described traditional credit programs as slow and rigid, leaving opportunities for innovation. This move reflects growing integration between crypto assets and traditional financial products, offering an alternative for underbanked or crypto-wealthy individuals. The stablecoin-collateralized model reduces issuer risk while allowing users to leverage their digital holdings for everyday spending.
Key facts
- Cardless and Coinbase launch stablecoin-secured credit card for users without traditional credit approval.
- Cardholders pledge USDC as collateral, pay $49.99 fee, and earn yield on locked stablecoins.
- Card builds on prior Coinbase-branded American Express card offering bitcoin cashback.
- Product targets crypto users who lack access to unsecured credit but hold digital assets.
- Traditional credit programs are slow and rigid, per Cardless, leaving room for innovation.