Coinbase and Cardless Launch Stablecoin-Backed Credit Card
In brief
- Coinbase and Cardless launched a stablecoin-backed credit card for applicants unable to qualify for traditional unsecured credit
- Cardholders pay $49.99 annually and earn yield on USDC collateral backing the debt
- Partnership extends Coinbase-branded card launched September offering up to 4% bitcoin cashback
Building on an existing partnership
Cardless and Coinbase previously introduced a Coinbase-branded card in association with American Express in September. That earlier card offered up to 4% cashback in bitcoin. The stablecoin-secured product extends this relationship into a different market segment.
The collateral mechanism
The stablecoin-backed card is designed for situations where a regular credit card cannot be approved on an unsecured basis. Cardless has facilitated credit cards for brands including Qatar Airways and Alibaba, giving the firm deep experience in alternative credit structures. Some of the cardholder's stablecoin holdings are set aside as collateral against the debt—a mechanism that reduces issuer risk while allowing the customer to retain yield on the locked capital.
Applicant diversity
Cardless co-founder Michael Spelfogel noted that applicants come from different parts of the credit spectrum. The framing suggests the card appeals to both newcomers building crypto wealth and those with credit constraints in the traditional system. By charging $49.99 upfront and allowing yield on collateral, the product creates a revenue model that doesn't rely solely on interchange fees.
