The US-based crypto exchange Coinbase unveiled its first branded credit card in collaboration with American Express. The card will be available exclusively to US members of the platform’s monthly subscription service, Coinbase One, which provides benefits such as zero trading fees and enhanced staking rewards.
A New Era For Crypto Credit Cards?
Starting this fall, cardholders can earn between 2% and 4% back in Bitcoin (BTC) on their purchases, alongside a range of benefits associated with the American Express network.
According to a CNBC report on the matter, Coinbase aims to cater to varying customer needs by also launching a lower-cost “Basic” subscription tier, priced at $4.99 per month or $49.99 annually, which offers fewer rewards compared to the Coinbase One subscription at $29.99 per month.
Will Stredwick from American Express global network services highlighted the potential synergy between Coinbase and the cryptocurrency market, stating, “We see real potential in the combination of Coinbase and crypto with the powerful backing of American Express.”
While Coinbase’s primary business remains its cryptocurrency exchange for retail and institutional investors, the company has been steadily expanding its subscription and services portfolio.
This includes stablecoins, staking options, and other subscription-based offerings that support the growing demand for crypto-related services. In the first quarter, Coinbase reported trading revenue of $1.26 billion, with subscription and services revenue reaching $698.1 million.
Coinbase One Surpasses One Million Members
Coinbase One, which launched in 2023, has attracted over one million members, showcasing the growing interest in subscription models within the crypto market. The company also operates a developer platform called Base and a self-custody wallet, further diversifying its offerings.
The launch of the Coinbase One card comes at a time when the crypto industry anticipates a surge in product launches, buoyed by pro-crypto policies and clearer regulations expected from Congress in the coming months.
This marks the exchange’s first credit card offering; the company previously introduced a prepaid debit card in partnership with Visa back in 2020.
American Express also has experience in the crypto space, having previously collaborated with trading platform Abra on a crypto-back card that was supposed to launch in 2022 but ultimately did not materialize. Other crypto-back cards have also been phased out or stripped of their crypto redemption options.
Currently, Gemini, the cryptocurrency exchange founded by the Winklevoss twins, offers a credit card that allows users to earn crypto rewards. Additionally, Venmo, owned by PayPal, features a “Cash Back to Crypto” function, allowing users to earn cryptocurrency through its credit card.
When writing, the exchange’s stock, COIN, trades at $242,71, well below its yearly-high of $310 reached during the year’s first quarter.
Featured image from DALL-E, chart from TradingView.com
