Coinbase and Cardless launch USDC-backed credit card

Coinbase and Cardless have introduced a stablecoin-backed credit card that allows users to use their USDC holdings as collateral when they are unable to qualify for a traditional unsecured credit card.

The product enables applicants to set aside a portion of their USDC held on Coinbase as collateral, providing access to a credit line while allowing the pledged assets to continue generating yield.

“People apply from all different parts of the credit spectrum,”

Said Cardless co-founder, Michael Spelfogel.

Spelfogel said the card is designed for users who may be building their credit history or accumulating wealth through digital assets but are unable to obtain conventional credit products through traditional underwriting models.

Cardholders pay an annual fee of US$49.99 and retain exposure to the yield generated by the USDC used as collateral, creating an alternative form of secured borrowing linked to stablecoin holdings.

The launch expands an existing partnership between Coinbase and Cardless that began in September with a Coinbase-branded American Express card offering up to 4% cashback in Bitcoin, although the companies have not disclosed issuance figures.

The initiative reflects a broader effort by fintech and crypto firms to modernise credit products by using digital assets as collateral, challenging traditional bank-centric lending models that rely heavily on conventional credit histories and income assessments.

At the time of reporting, Bitcoin price was $61,755.84.