Coinbase has announced the launch of a new credit card and two futures contracts, expanding its offerings in the area of cryptocurrencies and financial derivatives.
New Coinbase Credit Card
Coinbase is set to release a credit card that allows users to earn up to 4% cash back in Bitcoin. Applicants will need to subscribe to Coinbase's premium trading service.
Rewards will be credited directly to users' Coinbase accounts, making this product appealing to existing customers. The card differs from traditional cash back cards by offering crypto rewards.
Bitcoin and Ethereum Futures
Coinbase also announced the launch of two new futures contracts, set to go live on July 21. These will allow for nano Bitcoin and nano Ether trading under U.S. regulations. This is the first time American traders will be able to access quotes similar to international futures without needing offshore registration.
The contracts will trade 24/7 and include a funding rate mechanism to keep futures prices aligned with the spot market, eliminating many risks associated with overseas trading.
Expert Opinions on the Innovations
Some experts express skepticism about the new product. Graham Friedman, a crypto venture capital specialist, noted that using credit cards may contradict the core privacy principles associated with cryptocurrencies. "For me, as someone who travels, cards with upgrades and miles are a better fit," he said.
Coinbase's new offerings in the form of a credit card and futures contracts highlight its ambition to expand its influence in the cryptocurrency market. However, the mixed reactions from experts and users indicate differing views on the integration of cryptocurrencies into everyday financial transactions.
