Coinbase and Cardless unveil credit card backed by stablecoins

Coinbase and Cardless launched a credit card backed by stablecoins on May 15, 2024, designed for consumers who may not qualify for traditional unsecured credit cards. This innovative product allows users to leverage their Circle's USD Coin (USDC) holdings as collateral for credit lines. The card offers a credit limit of up to $10,000, with rewards including 2% back on dining and 1% back on all other purchases, redeemable as USDC. Cardless stated that the card's approval is not dependent on a traditional credit score, making it accessible to a broader audience. The company also highlighted that the card's credit line is dynamically adjusted based on the value of the user's USDC collateral, which is held in a Coinbase account. This partnership aims to bridge the gap between traditional finance and the cryptocurrency ecosystem, providing a new avenue for credit access.