Ether.fi Launches Blockchain Credit Card Offering 3% Cash-Back And Crypto Collateral Through Scroll Partnership

Liquid restaking services firm Ether.fi on Monday announced its plan to launch Ether.fi Cash, a blockchain-based credit card that allows users to spend fiat while using their crypto assets as collateral.

What Happened: Ether.fi has partnered with Scroll, an Ethereum ETH/USD Layer-2 network, to bring the card to market, Coindesk reported.

The Ether.fi Cash card aims to revolutionize the way people use their crypto holdings, offering the ability to spend money without selling their digital assets.

Instead, users can keep their crypto, earn yield and use the card for everyday purchases.

Initially available internally at Ether.fi, the card is set to start shipping to pre-order customers on Sep. 16.

Users will also enjoy crypto-based rewards and enhanced transaction efficiency through Scroll’s network, which powers the card's decentralized finance (DeFi) features.

Sandy Peng, co-founder of Scroll, emphasized the affordability of the Ether.fi Cash card and said, “If you put 10 Ethereum into Aave and use this credit card, then for you, it’s going to be the cheapest credit card in the world that you can find.”

The card is designed to be more accessible than traditional credit cards, offering 3% cash-back on all purchases with no restrictions. Ether.fi Cash will be issued as a physical Visa card, compatible with mobile payment platforms like Apple Pay.

Mike Silagadze, Ether.fi co-founder, acknowledged that the first wave of users will likely be “crypto degens” or DeFi enthusiasts.

Also Read: Bitcoin, Ethereum Need New Catalyst For ‘Enhanced Retail Engagement,’ JPMorgan Says

However, the long-term goal is to reach a broader audience.

"There’s just no other card that gives you 3% cash-back without crazy restrictions,” Silagadze said.

Peng echoed the sentiment, adding, “It’s genuinely a better credit card product” rather than just another crypto product.

Scroll’s zero-knowledge rollup technology is a key feature of Ether.fi Cash, allowing for cheaper and faster transactions.

Scroll was selected as the card’s settlement layer partly because of its ability to reduce gas fees, making gasless transactions possible.

“No one cares about what chain you’re on, people just care about whether it’s a good product,” Peng said, emphasizing the product's user-friendly experience.

While Ether.fi Cash won’t be available in the U.S. due to regulatory concerns, the card will be offered in countries like the UK, Hong Kong, Brazil, France and several others.

This strategic expansion aligns with Ether.fi's vision to make crypto spending more mainstream.

The launch of this credit card and its potential impact on both crypto and traditional finance are sure to be hot topics at Benzinga's Future of Digital Assets event on Nov. 19.

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