Digital assets are going well beyond speculation. Now, they are becoming collateral for credit card purchases.
What’s happening:
- Ether.fi has partnered with layer-2 Ethereum blockchain company Scroll to launch a new crypto credit card which will be powered by Visa (NYSE: V)
The big idea:
- The new credit card being launched by Ether.fi and Scroll will enable users to use their digital assets as collateral to fund purchases
- Instead of directly spending digital assets, users will earn cash back from purchases as a reward for staking their crypto holdings on Ether.fi
- Eventually, Ether.fi plans to launch the ability for users to pay their credit card balance directly through the yields being generated from staking digital assets on the Ether.fi platform
By the numbers:
- Ether.fi currently has more than $5B USD of total value locked on their liquid restaking platform
- The new credit card from Ether.fi and Scroll will offer users 3% cash back on all purchases and transactions
Going deeper:
- Ether.fi has established one of the strongest networks in crypto, with existing partnerships with Chainlink, Base, Arbitrum and other leading projects as part of their liquid restaking platform
- Mastercard and Mercuryo also recently partnered to launch a Euro denominated crypto credit card that allows users to spend digital assets that are being held in self custody wallets
The intrigue:
- Bullish Capital, the venture arm of crypto giant Bullish Group which has notable backers including Peter Thiel and Block.one, previously led the Series A financing round for Ether.fi
