Ether.fi, a liquid restaking services firm, has announced the launch of Ether.fi Cash, a revolutionary blockchain-based credit card. This card empowers users to spend fiat currency while using their crypto assets as collateral, effectively bridging the gap between the traditional and crypto financial worlds.
Partnering with Scroll, an Ethereum Layer-2 network, Ether.fi is bringing this innovative card to market. The core concept behind Ether.fi Cash is to transform how people utilize their crypto holdings. Instead of selling their digital assets, users can leverage them as collateral to spend money, earn yield, and enjoy everyday purchases. This provides a seamless and secure way to access fiat currency while retaining the benefits of their crypto investments.
Initially launched internally within Ether.fi, the card will begin shipping to pre-order customers on September 16th. Users can expect several benefits, including crypto-based rewards and enhanced transaction efficiency powered by Scroll’s decentralized finance (DeFi) features. Scroll’s co-founder, Sandy Peng, emphasized the card’s affordability, stating, “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.”
Ether.fi Cash is designed to be more accessible than traditional credit cards, offering a generous 3% cashback on all purchases with no restrictions. Issued as a physical Visa card, it will be compatible with mobile payment platforms like Apple Pay, making it even more convenient for everyday use. While the initial user base is expected to be “crypto degens” or DeFi enthusiasts, the long-term vision is to reach a broader audience, as Mike Silagadze, Ether.fi co-founder, stated: “There’s just no other card that gives you 3% cash-back without crazy restrictions.”
Scroll’s zero-knowledge rollup technology is a key differentiator for Ether.fi Cash, enabling cheaper and faster transactions. This technology was chosen for the card’s settlement layer due to its ability to reduce gas fees, potentially enabling gasless transactions. “No one cares about what chain you’re on, people just care about whether it’s a good product,” Peng emphasized, highlighting the card’s user-friendly experience.
While Ether.fi Cash will not be available in the U.S. due to regulatory concerns, it 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 November 19th.
