Stablecoins have made their way into the credit card market with the launch of Coinbase’s new card, which allows users to pledge USDC stablecoins as collateral.
Developed in collaboration with Cardless, the product targets crypto-native consumers who may not qualify for unsecured credit cards under standard credit checks. Users can allocate a portion of the USDC held in their Coinbase accounts as collateral, with their credit limit set based on that amount.
Branded the Coinbase One Card, the product will run on the American Express network. It’s expected to roll out later this summer to waitlisted customers, with broader availability planned for the fall.
Coinbase is the first partner to issue a card using Cardless’ embedded card-issuing platform. The system enables companies to design and manage credit card programs directly within their own apps or websites, reducing reliance on traditional co‑branded card structures.
Rewards and Structure
Cardholders will pay a $49.99 annual fee, which may be partially offset by the ability to earn yield on USDC used as collateral. However, this structure will need to be carefully designed to say within regulatory boundaries, including restrictions under the GENIUS Act framework, which limits how stablecoin issuers can offer interest or yield directly to holders.
Coinbase One members will also be able to earn up to 4% back in Bitcoin on purchases, though the top rate comes with conditions. Reaching the highest tier requires holding up to $200,000 in Coinbase assets, which narrows eligibility significantly. As with most crypto rewards programs, converting Bitcoin rewards into fiat may also trigger taxable events, adding complexity for users.
In Search of a Market
While stablecoins continue to grow in popularity, the addressable market for this type of card may be relatively niche. The card appears aimed at users who are comfortable holding significant crypto balances but still fall outside of traditional lending standards for a secured card.
“The other side is people who are creditworthy but would rather borrow against assets than sell them kind of like a HELOC or securities backed lending,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “I think that’s more where it’s headed, where crypto assets become collateral for everyday financial products.”
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