The new card allows USDC holders to use crypto as collateral for credit access, targeting those ineligible for traditional unsecured cards.
Coinbase and fintech firm Cardless introduced a credit card secured by stablecoins, enabling users to leverage USDC holdings as collateral. The product targets individuals unable to qualify for unsecured credit cards, requiring a $49.99 access fee and locking a portion of USDC assets as security while still earning yield.
The card expands a prior partnership that included a Coinbase-branded American Express card offering bitcoin cashback. Cardless, known for issuing branded cards for companies like Qatar Airways and Alibaba, developed the product to modernize credit access for crypto holders outside traditional banking systems.
Applicants set aside stablecoins on Coinbase, which remain yield-bearing despite being collateralized. The initiative reflects growing integration between digital assets and consumer credit markets.