Coinbase and American Express announced the launch of the Coinbase One Card, which offers up to 4% cashback in Bitcoin for every purchase.
Unique Features of the Card
The Coinbase One Card is made of stainless steel and features the Bitcoin Genesis block, symbolizing the start of the cryptocurrency revolution. Key advantages include:
* **2–4% Bitcoin cashback** on every purchase, rates pegged to your Coinbase asset balances. * **Amex perks**: no foreign transaction fees, premium travel protections, and event access. * **Crypto rewards**: 4.5% APY on USDC, 5% staking rewards on ETH/SOL, and $10/month Base network gas credits for active users. * **App connectivity**: simplified management of spending and monitoring rewards, with the ability to directly send BTC to your Coinbase wallet within the app.
Comparison with Other Cards
The Coinbase card outperforms the Gemini Mastercard, which offers 3% back in Bitcoin or other cryptocurrencies and has no annual fee. However, the Coinbase card is only available to Coinbase One members, requiring a subscription fee of $29.99 per month:
| **Feature** | **Coinbase One Card** | **Gemini Mastercard** | | --- | --- | --- | | BTC Rewards | Up to 4% | Up to 3% | | Network | American Express | Mastercard | | Subscription Req. | Yes ($29.99/mo) | No | | Crypto Choices | Bitcoin only | 40+ tokens | | Instant Rewards | No | Yes | | Availability | U.S. subscribers only | All U.S. residents |
Coinbase's Future and Financial Strategy
The card launch is about more than customer benefits; it's an effort to establish recurring revenue and steer users into Coinbase's expanding universe of crypto products, including the upcoming U.S. perpetual futures platform. By linking the card to Coinbase One, the company aims to shift its model away from volatile trading fees toward more stable subscription revenue. Additionally, the Amex partnership allows Coinbase to leverage premium interchange rates, enhancing benefits for card users. However, the card also faces regulatory challenges related to credit card policies and cryptocurrency legislation.
The Coinbase One Card may be a worthwhile option for active cryptocurrency users, but for casual spenders, the subscription fee may outweigh potential rewards.
