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Coinbase’s Bitcoin-Backed Credit Card: A Bold Step Toward Mainstream Crypto Spending in 2025

Coinbase’s Bitcoin-Backed Credit Card: A Bold Step Toward Mainstream Crypto Spending in 2025

Published on June 13, 2025 • By TechPlusNews

In a landmark move for cryptocurrency adoption, Coinbase unveiled its Coinbase One Card on June 12, 2025, a credit card offering up to 4% cashback in Bitcoin (BTC) on every purchase. Developed in partnership with American Express, this innovative product aims to seamlessly blend digital currencies with everyday spending, marking a significant milestone in bridging traditional finance and blockchain technology.

Announced at Coinbase’s State of Crypto Summit in New York, the card is set to launch in fall 2025, exclusively for U.S.-based Coinbase One subscribers. As the crypto market continues to mature, this initiative could redefine how consumers interact with digital assets.



The Coinbase One Card: Features and Functionality

The Coinbase One Card is a stainless-steel credit card designed to make cryptocurrency rewards accessible and practical. Unlike Coinbase’s earlier Visa debit card launched in 2020, this is a true credit card, issued by First Electronic Bank and powered by the American Express network.

Cardholders can earn between 2% and 4% Bitcoin cashback, with the reward rate scaling based on the amount of digital assets held in their Coinbase account. This tiered structure incentivizes users to consolidate their crypto holdings on the platform, boosting engagement and loyalty.

Perks include:

  • Zero foreign transaction fees
  • Access to exclusive Amex Experiences
  • Purchase protections like extended warranties and trip cancellation coverage
  • Management via Coinbase’s mobile app for Android and iOS

The premium card design is engraved with part of Bitcoin’s genesis block, adding collectible value and status appeal for crypto enthusiasts.

Users must subscribe to Coinbase One to access the card. Membership costs:

  • $29.99/month for full benefits
  • $4.99/month or $49.99/year for the “Basic” tier

Repayments can be made via linked bank accounts or crypto balances—adding flexibility but also crypto volatility risks.

Why This Matters: Crypto Meets Everyday Spending

Coinbase’s Bitcoin-backed credit card is a strategic push to integrate cryptocurrency into daily life, solving one of crypto’s biggest challenges: real-world utility.

By converting everyday purchases into BTC rewards, Coinbase mirrors traditional cashback systems but swaps fiat for crypto, appealing to crypto adopters and newcomers alike.

The partnership with American Express, a trusted name with 141 million global users, gives the card credibility and reach. Will Stredwick of Amex described it as “an excellent mix of what customers are looking for right now,” reflecting strong potential appeal.

With over 560 million global crypto users, Coinbase is positioned to capture a large, tech-savvy market with this product.

The Broader Context: Crypto Cards in 2025

Coinbase’s credit card launch follows a growing trend in 2024–2025:

  • MetaMask launched a crypto debit card
  • Mastercard partnered with OKX and Kraken
  • Bybit introduced a 10% cashback rewards card
  • Crypto.com continues expanding prepaid card offerings

But Coinbase’s card is unique—it’s a real credit card focused on Bitcoin, avoiding prepaid complexities and capitalizing on Bitcoin’s dominance, especially with BTC nearing $105,000 in June 2025.

The launch coincides with favorable U.S. regulation. Coinbase CEO Brian Armstrong pushed for the Stablecoin Act, Clarity Act, and Genius Act to pass by August 2025—bills that could remove legal friction for crypto adoption.

Coinbase is also expanding with:

  • USDC payment integration on Shopify
  • Talks with the CFTC for perpetual futures trading

Challenges and Risks

Despite excitement, risks remain:

  • Bitcoin volatility may reduce the value of rewards
  • High subscription costs may deter light users
  • Hard credit pulls may reduce credit scores by 5–10 points
  • Storing more assets on Coinbase increases exchange exposure

Failed projects like Abra’s Amex card and Venmo’s “Cash Back to Crypto” highlight the challenge. Critics on X have called it a potential “debt trap,” citing BTC’s price swings and credit risk.

Coinbase must address these issues with transparency and financial literacy tools to maintain consumer trust.

The Future of Crypto Spending

The Coinbase One Card signals a major shift in making cryptocurrency a part of everyday life. If Coinbase executes effectively, this card could become a flagship product, helping it grow beyond trading into mainstream financial services.

With over 1 million Coinbase One subscribers and Q1 2025 revenue of $2.03 billion, Coinbase is well-equipped for expansion. Plans for Ethereum and Solana reward options could attract an even broader user base.

Ultimately, this card offers a glimpse into a future where blockchain and fiat finance coexist, allowing users to spend, save, and invest seamlessly. For crypto fans and early adopters, it’s a bold and compelling offer—with high rewards and equally high risks.

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