Coinbase and Cardless Unveil Stablecoin-Backed Credit Card

Cardless and Coinbase have joined forces to introduce a stablecoin-backed credit card that allows users to pledge their crypto as collateral for a traditional unsecured credit card. This new product targets applicants who hold digital assets on Coinbase but don't meet the requirements for conventional credit approval.

The payment card, which is part of a growing line of stablecoin-backed credit products, was built in conjunction with Coinbase and allows users to set aside a portion of their USDC holdings as collateral. Cardless co-founder Michael Spelfogel explained that applicants can use this method because they believe in cryptocurrency, but are just beginning their journeys and accumulating wealth.

The card, which costs $49.99 for access, continues to earn yield on the sequestered USDC. So far, stablecoins have become one of the fastest-growing corners of crypto, with a combined market capitalization that has climbed past $317 billion.