Coinbase Launches 4% Bitcoin Cashback Card With American Express

Coinbase, in collaboration with American Express, has introduced the Coinbase One Card, a metal credit card designed to offer up to 4% cashback in Bitcoin on every purchase. This new card, unveiled at the State of Crypto Summit, represents Coinbase's first venture into the credit card market, following its earlier Visa debit card offering. The card is set to be available to U.S. Coinbase One members later this fall.

The Coinbase One Card stands out with its stainless steel design, featuring an engraving of Bitcoin's Genesis block, a nod to the history of cryptocurrency. The card's appeal lies in its rewards structure, which includes 2–4% Bitcoin cashback on every purchase, with rates tied to the user's Coinbase asset balances. Additionally, the card offers American Express perks such as no foreign transaction fees, premium travel protections, and access to exclusive events. Crypto enthusiasts can also benefit from 4.5% APY interest on USDC, 5% staking rewards on ETH/SOL, and $10/month Base network gas credits for active users. The card's app connectivity allows users to manage their spending and rewards efficiently, with the option to send BTC directly to their Coinbase wallet.

When compared to other crypto credit cards, such as the Gemini Mastercard, the Coinbase One Card offers higher rewards and the prestige of the American Express network. However, it is exclusively available to U.S. Coinbase One members, who must pay a $29.99/month subscription fee (or $4.99/month for the Basic version with fewer benefits). In contrast, the Gemini Mastercard offers 3% back in Bitcoin or other cryptocurrencies, no yearly fee, and a wider range of crypto assets (40+ tokens), making it a more accessible option for occasional users.

Coinbase's strategy with the One Card extends beyond customer benefits. The company aims to establish a recurring revenue stream and integrate users into its expanding suite of crypto products, including its upcoming U.S. perpetual futures platform. By linking the card to Coinbase One, the company shifts its revenue model from volatile trading fees to more stable subscription revenue. The card's rollout aligns with Coinbase's regulatory efforts to offer CFTC-compliant perpetual futures trading to U.S. consumers, creating a cohesive ecosystem where users can spend, earn, and trade derivatives under one roof.

The partnership with American Express enables Coinbase to leverage premium interchange rates, offering card members top-tier benefits. However, the card's economics and reward system are subject to regulatory changes, particularly around credit card swipe fees and stablecoin legislation. Any shifts in these policies could impact the card's viability and appeal.

The Coinbase One Card is best suited for active crypto users who already benefit from Coinbase One’s zero trading fees and staking rewards, and who pay off their balances monthly. For casual spenders, the subscription fee may not justify the rewards, especially with alternatives like the Gemini Mastercard available. Overall, the Coinbase One Card represents a significant move by Coinbase to integrate cryptocurrency into everyday spending, potentially reshaping the fintech landscape.