Brahma Partners Euler Labs to Launch Swype Card for Real-World DeFi Spending

Brahma, a crypto credit card startup, has partnered with Euler Labs to launch Swype, a virtual card that allows users to utilize their DeFi collateral for real-world spending without liquidating their holdings. This innovation aims to bridge the gap between decentralized finance (DeFi) and traditional payment systems, potentially redefining how crypto interacts with conventional financial infrastructure.

The Swype card, built on Brahma’s onchain infrastructure and initially deployed on Base, enables qualified users to make purchases at merchants worldwide by borrowing USDC against collateral held on Euler or AAVE. The process is executed in real time, governed by programmable logic defined by the user, and remains fully non-custodial. This marks the first live use of Brahma’s Card SDK, with Euler providing the credit layer and Brahma managing policy, execution, and routing.

For years, crypto users have faced a dilemma: either sell their assets to access cash or lock them up in lending protocols for passive yield. Brahma’s solution, built on Euler’s lending infrastructure, eliminates this trade-off by converting collateral into a dynamic credit line at the point of sale. This move suggests that Brahma has the technical foundation to scale real-time payments, as its existing onchain automation tools already handle significant capital and transaction volumes.

Swype works by connecting DeFi lending positions directly to Visa’s payment rails. Users must hold at least $1,000 in deposits on Euler or Aave to qualify, after which they can request a virtual card through a one-time KYC check. When a purchase is made, Brahma’s system automatically borrows USDC against the user’s collateral, settles with the merchant, and later repays the loan, all without requiring manual intervention. The card integrates with Apple Pay and Google Pay, giving it access to over 100 million merchants globally. Users retain control over their assets, setting custom borrowing limits and collateral preferences.

By abstracting away bridges and off-ramps, Brahma is testing whether DeFi can compete with traditional payment processors on speed and usability. However, challenges remain. Euler, which was rebuilt after its 2023 exploit, must prove its resilience under real-world payment flows. Additionally, Brahma’s reliance on KYC may deter hardcore decentralization advocates who prioritize anonymity and decentralization. Despite these challenges, the partnership between Brahma and Euler Labs represents a significant step forward in integrating DeFi with traditional financial systems, potentially opening new avenues for real-world spending powered by decentralized collateral.