Brahma Partners with Euler Labs to Launch Swype, a DeFi-Backed Credit Card for Real-World Spending

Brahma, a crypto credit card startup, has partnered with Euler Labs to launch Swype, a virtual card that lets users tap into their DeFi lending positions for real-world payments without selling or bridging assets. 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. Brahma's solution eliminates the trade-off between selling assets or locking them up in lending protocols for passive yield.

Fintech firms are increasingly adopting decentralized finance (DeFi) lending protocols, driven by their permissionless nature and the potential for higher yields. According to Merline Egalite, co-founder of Morpho, a leading DeFi lending protocol, fintech companies are recognizing the strategic advantages of integrating DeFi into their services. This shift is poised to accelerate, with Egalite predicting that a significant portion of global fintech firms will migrate to DeFi within the next three years [1].

DeFi lending protocols allow users to lend and borrow cryptocurrency for passive income through smart contracts, bypassing traditional financial intermediaries. This permissionless model offers more accessible loans with smaller fees, making it an attractive alternative to centralized lending services. The growing efficiency and accessibility of DeFi lending protocols are inspiring more fintech companies to adopt them [1].

One notable example of this trend is Brahma, a crypto credit card startup that has partnered with Euler Labs to launch Swype, a virtual card that lets users tap into their DeFi lending positions for real-world payments without selling or bridging assets. 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 [2].

The integration of DeFi lending with real-world payment solutions is a significant development. It eliminates the trade-off between selling assets or locking them up in lending protocols for passive yield. This innovation provides users with greater flexibility and control over their financial assets.

The DeFi lending market has seen substantial growth, with total value locked (TVL) reaching a new cumulative all-time high of $66.7 billion on Friday [1]. The AAVE protocol, with its $31.7 billion TVL, currently accounts for 47% of the total DeFi lending value, while Morpho’s $5.5 billion TVL accounts for over 8.2%. This growth indicates a strong interest in DeFi lending from both users and fintech firms.

In conclusion, the shift towards DeFi lending among fintech firms is a strategic move driven by the potential for higher yields and greater accessibility. Innovations like Brahma's Swype card demonstrate the practical applications of DeFi lending in the real world. As DeFi continues to evolve, it is likely to play an increasingly significant role in the fintech landscape.

References:
[1] https://cointelegraph.com/news/fintech-firms-move-defi-lending-3-years?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed
[2] https://fakti.bg/en/biznes/986489-fibank-integrates-apple-pay-for-payments-on-virtual-pos-terminals