Coinbase announced the launch of its first-ever branded credit card, the Coinbase One Card, in partnership with American Express. Scheduled to roll out this fall exclusively for U.S. members of Coinbase One, the company’s subscription service, this innovative credit card offers users the opportunity to earn between 2% and 4% back in Bitcoin on every purchase, marking a significant advancement in crypto rewards programs.

Image Source: Coinbase

A New Era of Crypto Rewards

The Coinbase One Card is designed to reward users with Bitcoin, the world’s leading cryptocurrency, every time they use the card for everyday expenses, whether buying groceries, booking travel, or making online purchases. The percentage of Bitcoin rewards depends on the amount of assets a user holds on the Coinbase platform, with rewards ranging from 2% up to an impressive 4% back in Bitcoin.

Exclusive Benefits for Coinbase One Subscribers

The Coinbase One Card is exclusively available to subscribers of Coinbase One, a monthly subscription service that costs $29.99 and offers a range of premium benefits. These include zero trading fees on simple trades, higher staking rewards, and dedicated customer support. The subscription service has seen rapid growth since its launch in 2023, now boasting over a million members.

In addition to the Coinbase One Card, Coinbase recently introduced a more affordable subscription tier called Coinbase Basic, priced at $4.99 per month or $49.99 annually. This tier offers zero trading fees on up to $500 worth of trades monthly, boosted staking rewards, and protection against unauthorized crypto account access, alongside access to the Coinbase One Card once it launches.

A Strategic Partnership with American Express

This collaboration marks Coinbase’s first foray into issuing a credit card powered by the American Express network, a significant step beyond its previous prepaid debit card launched with Visa in 2020. Will Stredwick, head of American Express global network services, expressed enthusiasm about the partnership, noting the excellent mix of features that meet current customer demands by combining Coinbase’s crypto expertise with Amex’s payment network. Cardholders will also enjoy access to American Express perks, including exclusive experiences, offers, and purchase protections, enhancing the overall value proposition of the Coinbase One Card.

Coinbase’s Vision Centered on Bitcoin

Coinbase has consistently positioned Bitcoin at the core of its strategic vision. Beyond offering custody services and supporting Bitcoin ETFs, the company actively integrates Bitcoin rewards into its products and advocates for Bitcoin-friendly regulation in Washington. Coinbase also supports Bitcoin development through funding grants and engineering assistance, reinforcing its commitment to the cryptocurrency’s ecosystem. The Coinbase One Card aligns perfectly with this vision, encouraging users to accumulate Bitcoin passively while engaging in everyday financial activities.

Market Context

The launch of the Coinbase One Card comes amid a growing trend of crypto exchanges introducing payment cards to bridge the gap between digital assets and real-world spending. Other players like MetaMask and Mastercard have recently rolled out or announced crypto-linked debit cards, reflecting increasing demand for practical crypto payment solutions. American Express’s previous experience with crypto rewards, such as its 2022 collaboration with Abra, adds credibility to this new partnership with Coinbase, signalling a maturing market for crypto payment products.

What Users Can Expect

1. Bitcoin Rewards: Earn 2% to 4% back in Bitcoin on every purchase, with the exact rate tied to the user’s asset holdings on Coinbase.

2. American Express Perks: Access to exclusive offers, experiences, and purchase protections.

3. Subscription Benefits: Zero trading fees, boosted staking rewards, and priority customer support through Coinbase One.

4. Launch Timeline: The card is expected to be available this fall for U.S. Coinbase One members, with a waitlist already open for interested users.

Community Reactions

The announcement has sparked excitement within the crypto community, with many users eager to leverage the card’s rewards to grow their Bitcoin portfolios. Some discussions highlight the subscription fee as a consideration, while others compare the card’s benefits to existing cashback and crypto reward cards on the market. Tax implications of Bitcoin rewards remain a topic of interest, with current U.S. guidelines generally treating cashback rewards as non-taxable rebates, though the fair market value of Bitcoin at the time of receipt establishes the cost basis for future transactions.