Engineering Manager

Coinbase and Cardless launch USDC-collateralized credit card. June 10, 2026 The cryptocurrency lending and payments landscape is shifting again as Coinbase and Cardless unveil a stablecoin-collateralized credit card that uses USDC held on Coinbase as collateral when traditional unsecured credit isn't available. Applicants set aside a portion of their USDC holdings as collateral, continue to earn yield on the sequestered assets, and pay a $49.99 access fee to access the card. The product extends a partnership that began with a Coinbase-branded card issued in partnership with American Express, and Cardless has previously facilitated cards for brands such as Qatar Airways and Alibaba. The issuing bank behind the program is Utah-licensed First Electronic Bank. For context, see the original reporting on the launch. Source. The latest move marks a notable shift in how stablecoins move from transactional tokens toward active credit collateral. By tying credit access to custody-enabled collateral, the program invites a broader set of users into card networks through crypto-owned balances. The setup leans on a pre-existing Coinbase-Cardless collaboration that began with a Coinbase-branded card backed by AmEx, a relationship Cardless has leveraged as it expands its retail-card footprint. For historical context on the Coinbase-AmEx lineage, see the earlier Coinbase-branded card coverage. Coinbase-branded card. From a risk-management standpoint, the arrangement introduces explicit custody and default-control mechanisms. The model envisions a structured way to freeze, sequester, or restrict transfers of specific stablecoin balances within the Coinbase interface to manage default risk, a framework that lenders will watch closely as it scales. Direct implications point to enabling users who lack traditional unsecured credit to access card networks using digital assets as collateral, while preserving yield on locked USDC for the borrower. The program is anchored by Cardless's industry partnerships and Utah-licensed First Electronic Bank as the issuing bank, underscoring a bridge between fintech and regulated banking rails. Assetify's take: stablecoins becoming active credit collateral could expand access to card products but will demand transparent custody controls, clear liquidation-like parameters, and strong consumer disclosures to ensure risk is not hidden in UI design. Assetify angle: stablecoins as credit collateral is not merely a payments story; it's a lending infrastructure story that regulators and lenders will watch for real-time clarity on default scenarios and user protections.

Coinbase debuts USDC backed credit card for new borrowers. Published on: June 9, 2026 Kathleen Kinder Barry Elad As Featured In Coinbase has partnered with Cardless to launch a new credit card backed by USDC holdings, giving users another way to access credit without relying solely on traditional credit history. Key takeaways. * Coinbase and Cardless have launched a USDC backed credit card for users who may not qualify for traditional unsecured credit. * Cardholders can use a portion of their USDC holdings as collateral while continuing to earn yield on those funds. * The card carries a $49.99 access fee and builds on the companies' existing partnership. * The move highlights the growing integration of crypto assets and traditional financial services. What happened? Coinbase and financial technology company Cardless have introduced a new credit card that allows customers to use their USDC stablecoin holdings as collateral to secure a credit line. The product is designed for people who may struggle to qualify for conventional unsecured credit cards but have accumulated digital assets on Coinbase. Unlike traditional secured credit cards, the new offering allows users to continue earning yield on the USDC set aside as collateral, creating an additional incentive for stablecoin holders seeking access to credit. Coinbase and Cardless expand their partnership. The launch marks the latest development in the relationship between Coinbase and Cardless. The two companies previously teamed up in September to introduce a Coinbase branded card in partnership with American Express. That product offered users up to 4% cashback in Bitcoin on eligible purchases. While the earlier card focused on rewards, the new USDC backed credit card is aimed at expanding access to credit. Cardless has not disclosed how many cards have been issued through the previous program, but the company views the latest product as an extension of its effort to bring more flexible credit solutions to consumers. Cardless has experience building co-branded credit card programs for major brands, including Qatar Airways and Alibaba, giving the company a strong background in developing specialized financial products. How the USDC collateral model works? Under the new structure, applicants allocate a portion of their USDC holdings on Coinbase as collateral against their credit line. If approved, they receive access to a functioning credit card without relying entirely on a traditional credit profile. According to Cardless co-founder Michael Spelfogel, the card is intended for customers across different financial backgrounds. Spelfogel said: People apply from all different parts of the credit spectrum. There are some people that want to use this method because they believe in cryptocurrency, but they're just beginning their journeys and accumulating wealth. Michael Spelfogel Co-founder - Cardless The approach could be particularly attractive to crypto users who have built significant digital asset holdings but lack the long credit histories often required by banks. Rather than selling their assets to access liquidity, users can leverage their USDC holdings while maintaining exposure to the stablecoin. Yield earning feature sets product apart. One of the most notable aspects of the card is that customers continue earning yield on the USDC held as collateral. Traditional secured credit cards typically require a cash deposit that remains largely inactive while securing the account. In contrast, the Coinbase and Cardless product allows the collateralized USDC to remain productive while supporting the credit line. Cardholders are required to pay a $49.99 access fee for the product. However, the ability to earn yield on collateral may help differentiate it from conventional secured card offerings. The structure also reflects how crypto-based financial products are increasingly borrowing concepts from decentralized finance while packaging them into more familiar consumer services. Crypto assets gain a larger role in consumer finance. The introduction of a USDC backed credit card underscores the growing convergence between digital assets and traditional financial infrastructure. By using stablecoins as collateral for borrowing, Coinbase and Cardless are offering a practical use case beyond trading, payments, or passive yield generation. Cardless has argued that traditional credit systems remain rigid and heavily dependent on bank driven underwriting models. The company believes businesses should have greater flexibility to design financial products around customer needs. As more consumers accumulate digital assets, products like the new Coinbase card could create additional pathways for accessing credit, particularly for individuals with limited borrowing histories. The launch also signals a broader shift toward recognizing crypto holdings as part of a person's financial profile rather than treating them as separate from mainstream finance. CoinLaw's takeaway. In my experience, one of the biggest barriers facing younger consumers and crypto users is that traditional credit systems often fail to recognize assets held outside conventional banking channels. I found Coinbase's latest move interesting because it gives stablecoin holders a way to unlock credit access without selling their assets. The ability to continue earning yield on collateralized USDC makes this product stand out from many secured cards currently available. If this model gains traction, it could push more financial institutions to rethink how creditworthiness is evaluated in a digital asset economy. This article has been reviewed and fact-checked by Barry Elad. CoinLaw follows strict Publishing Principles and a documented Fact-Check Policy to ensure accuracy, transparency, and editorial independence across all content. Add CoinLaw as a Preferred Source on Google for instant updates! References. Kathleen Kinder. Senior Editor Kathleen Kinder brings over 11 years of experience in the research industry, with deep expertise in finance, cryptocurrency, and insurance. At CoinLaw, she writes timely, reader-focused news articles and also serves as a senior editorial reviewer. Drawing on her background in B2B research, consumer insights, and executive interviews, she ensures every piece delivers clarity, accuracy, and real-world relevance. Disclaimer: The content published on CoinLaw is intended solely for informational and educational purposes. It does not constitute financial, legal, or investment advice, nor does it reflect the views or recommendations of CoinLaw regarding the buying, selling, or holding of any assets. All investments carry risk, and you should conduct your own research or consult with a qualified advisor before making any financial decisions. You use the information on this website entirely at your own risk.