TLDR
- Coinbase and Cardless launched a credit card backed by USDC holdings on the exchange.
- The product allows applicants to secure credit lines using stablecoin collateral.
- Cardholders continue earning yield on their sequestered USDC balances.
- Users pay a $49.99 fee to access the stablecoin-secured card.
- The launch builds on an earlier Coinbase card partnership with American Express.
Coinbase and Cardless have introduced a credit card secured by stablecoin holdings on the exchange. The companies said the product targets applicants who cannot access unsecured credit through traditional banks. Cardholders post USDC as collateral and continue earning yield while accessing a credit line.
Coinbase Partners with Cardless to Expand Access
Cardless confirmed it developed the new payment card with Coinbase for customers holding stablecoins on the platform. The product allows applicants to secure a credit line using a portion of their USDC balances. The companies said the structure supports users who lack approval for unsecured cards.
Cardless co-founder Michael Spelfogel said applicants come from across the credit spectrum. He stated, “People apply from all different parts of the credit spectrum.” He added that some customers choose this method because they believe in cryptocurrency and are building wealth.
The companies require cardholders to allocate part of their USDC as collateral against outstanding balances. However, Spelfogel said customers still earn yield on those sequestered holdings. He confirmed that users pay $49.99 to access the product.
The firms built the card on an existing partnership launched in September. At that time, they introduced a Coinbase-branded card in partnership with American Express. That earlier card offered up to 4% cashback in bitcoin.
Cardless declined to disclose how many cards it has issued under the prior program. However, the company confirmed that both products operate under the same collaboration framework. The new stablecoin-backed card expands the range of credit options available through Coinbase.
USDC Collateral Structure Supports New Credit Model
The new card uses USDC balances held on Coinbase as security for credit approval. Therefore, applicants who cannot qualify for unsecured cards may still obtain access through collateral. The companies said this approach allows digital assets to support traditional payment infrastructure.
Spelfogel said some customers prefer this method while beginning their financial journeys. He explained that many applicants accumulate crypto assets but lack established credit histories. As a result, the collateral structure enables them to access revolving credit.
Cardless stated that traditional credit programs operate through rigid banking systems. The company said those systems limit how brands design credit products. It added that many firms lacked tools to build flexible credit offerings independently.
The new product reflects Cardless’ broader strategy of partnering with consumer brands. The company previously facilitated credit cards for Qatar Airways and Alibaba. Now, it extends that model to digital asset holders through Coinbase.
Coinbase continues to integrate payment services with its exchange infrastructure. The stablecoin-secured card represents the latest addition to that effort. The companies said the product remains available to eligible USDC holders on the platform.
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