Coinbase has teamed up with Cardless to launch a new credit card that lets customers use USDC, its dollar-pegged stablecoin, as collateral. Instead of the standard unsecured model, this card works much like a secured loan: customers lock up a selected USDC balance on Coinbase, which then backs a line of credit for everyday spending.
That balance is sequestered, but still earns yield, as long as it’s held as collateral, and users pay a $49.99 fee for access. The card is built and managed directly inside the Coinbase app and runs on the American Express network, issued by First Electronic Bank.
Cardless says this setup is aimed at applicants who might not qualify for a traditional unsecured credit card, adding a new route for access to credit. The key advantage for users is they don’t need to liquidate stablecoin holdings to spend in the fiat world. They borrow instead of sell.
For Coinbase, this pushes USDC beyond trading and money movement into everyday consumer borrowing.