Jon Rice


<p>Binance US is among the bidders for the BlockFi credit card program and its associated customers, Blockworks has learned, while smaller fintech competitor Curve is also in the hunt for the approximately 87,500 BlockFi accounts. Coinbase was reportedly involved too, according to a source directly involved in the matter. Following publication of this story, Coinbase denied that it had any negotiations with BlockFi regarding their card business.</p>



<p>BlockFi <a href="https://cms.blockworks.co/news/blockfi-stops-withdrawals-hinting-ftx-mess-can-only-get-worse/" target="_blank" rel="noreferrer noopener">suspended withdrawals</a> on Thursday, saying that it was not able to operate as usual due to the “lack of clarity” over the evolving situation at FTX and Alameda Research, which have since instigated bankruptcy proceedings.</p>



<p>Multiple users on <a href="https://twitter.com/PortlandHODL/status/1591216294871064576?s=20&amp;t=jsB5OWVolOG2Yl6DXFnaIQ" target="_blank" rel="noreferrer noopener">Twitter</a> have noted that their BlockFi cards have stopped working over the past 24 hours.</p>



<p>BlockFi itself is believed to have a hole in the balance sheet approximating $800 million and is not understood to be heavily involved in the negotiations to purchase its card assets.</p>



<p>A source close to the matter told Blockworks that a deal is expected within 72 hours, and that most of the ongoing negotiations around acquisition of the BlockFi card assets are being conducted by the fintech servicing firm Deserve, which operates the BlockFi program. Evolve Bank &amp; Trust of Florida is the issuing bank.</p>



<h3 class="wp-block-heading">Centralized exchanges vs. “traditional” fintech</h3>



<p>Blockworks has reached out to BlockFi and Binance US without receiving comment.</p>



<p>A Curve spokesperson in the US explained that the company intended to continue to offer crypto rewards, the signature feature of the BlockFi card, if Curve was successful in acquiring the customer base. On its website, Curve lists 10 tokens in which it offers crypto rewards.</p>



<p>In an emailed statement, they said that “What sets our bid apart is that Curve is not a centralized exchange and has no interest in being one. We issue a crypto rewards credit card and make money on interchange revenue and interest; we&#8217;re not trying to convert credit card customers into exchange customers.”&nbsp;</p>



<p>“In fact, given what we&#8217;ve all seen this week, we will actively encourage our customers to<em> </em>self custody their rewards. We want customers to earn their rewards in crypto, then move them directly into their own wallets.”</p>



<p>BlockFi has experienced multiple travails this year. The company suffered more than most during the meltdown of Three Arrows Capital and the associated collapses of lending rivals Celsius and Voyager, which undermined trust in the crypto lending sector and caused monthly revenue at BlockFi to fall from around $48 million early this year to just $15 million by August.</p>



<p>An in-depth Blockworks article on the <a href="https://cms.blockworks.co/news/how-blockfi-went-from-tech-unicorn-to-crypto-burnout/">collapse of BlockFi</a> and its subsequent bailout by FTX — which has since <a href="https://cms.blockworks.co/news/ftx-ceo-bankman-fried-resigns-bankruptcy-proceedings-begin/">filed for Chapter 11 bankruptcy</a> protection — uncovered allegations by insiders of multiple issues with its tech stack and a company culture that focused on growth at the expense of sustainability.</p>



<p></p>



<p><em>Updated on November 13 2022 at 6:51pm ET. Following publication of this story, Coinbase denied that it had any negotiations with BlockFi regarding their card business. Headline updated and denial added. </em></p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Binance US, Curve in Bidding War for BlockFi Credit Card Customers

<div id="highlights-block_627d366985b12" class="highlights">
        <ul>
                <li>Crypto credit cards are a familiar way for people to begin investing in crypto without having to spend weeks educating themselves about the ecosystem</li>
                <li>With lower fees and potential for the collateral to appreciate over time, crypto-backed loans maximize purchasing power</li>
            </ul>
    
</div>



<h3 class="wp-block-heading">A quick primer on crypto credit cards</h3>



<p>Crypto credit cards are very similar to any other credit card. You make purchases using a line of credit, earn rewards, and pay back what you owe at a certain interest rate. What makes crypto cards different is they give you a direct line of credit by using your digital assets as collateral, removing the need for a credit check.</p>



<p>The inability to use cryptocurrency to buy everyday goods is a common criticism. But with crypto credit cards, the user doesn’t notice a difference at the Trader Joe&#8217;s checkout line. That direct line of credit can offer instant liquidity of their crypto portfolio.&nbsp;</p>



<h3 class="wp-block-heading">The difference between crypto credit and crypto debit cards</h3>



<p>Crypto debit cards work much like a traditional debit card. Users fund their account with stablecoins, bitcoin or altcoins. And when they use it at their local Gamestop, the card sells the equivalent value of their assets in exchange for the USD needed to make the purchase.</p>



<p>The main difference between the two is that crypto credit cards allow you to borrow funds for purchases and debit crypto cards sell your assets immediately whenever you make a purchase.&nbsp;</p>



<h3 class="wp-block-heading">The case for crypto cards</h3>



<p>On a recent <a href="https://www.youtube.com/watch?v=XCFSYU_EJws" target="_blank" rel="noreferrer noopener">episode of Empire</a>, Jeff Dorman reminded us that 20 years ago, people were afraid to put their credit card in a machine. Today we can’t imagine our lives without these magic rectangles. With some countries adopting bitcoin as legal tender and innovations like crypto cards, the question of wide adoption is not if, it’s when. But this inevitability is not the only reason to use a <a href="https://nexo.io/nexo-card" target="_blank" rel="noreferrer noopener">crypto credit card</a>.</p>



<h4 class="wp-block-heading">Earn crypto rewards</h4>



<p>There are many rewards cards giving cash back, travel points or other kinds of loyalty points for goods and services. Crypto credit cards offer rewards in crypto. This is a great way to <a href="https://bitcoinmagazine.com/business/stacking-sats-how-small-weekly-investments-can-offer-decent-returns" target="_blank" rel="noreferrer noopener">stack sats</a> or other cryptocurrencies without having to buy them on an exchange. While rewards differ from card to card, it’s easy to see the potential upside when crypto has a history of appreciating over time and fiat has a history of decreasing in value.</p>



<h4 class="wp-block-heading">Bridge TradFi and DeFi</h4>



<p>In the last several years, crypto adoption has shot through the roof, <a href="https://bitcoinist.com/not-just-a-fad-bitcoin-adoption-curve-rivals-the-internet/" target="_blank" rel="noreferrer noopener">mirroring the adoption curve of the internet</a> back in the &#8217;90s. But even today, it can be difficult for new users to understand how to get started with digital currency. Crypto credit cards are a familiar way for people to begin investing in crypto without having to spend weeks educating themselves about the ecosystem. What Robinhood <a href="https://www.cnbc.com/2020/10/07/how-robinhood-and-covid-introduced-millions-to-the-stock-market.html" target="_blank" rel="noreferrer noopener">did for stock investing</a>, crypto credit cards can do for crypto adoption.</p>



<h3 class="wp-block-heading">Adoption barriers to crypto cards</h3>



<h4 class="wp-block-heading">The taxable event</h4>



<p>Most crypto cards create <a href="https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies" target="_blank" rel="noreferrer noopener">a taxable event</a> every time you make a purchase. Because most governments classify cryptocurrencies as property instead of foreign currency, they are subject to capital gains. So if you were to use a crypto debit card to buy a $5 mothers day card and your portfolio is up 100%, that gesture will have an expensive tax bill.&nbsp;</p>



<h4 class="wp-block-heading">Price volatility&nbsp;</h4>



<p>Many investors are hesitant to use crypto cards because of major price swings and volatility. They not only want to avoid paying capital gains, they want to avoid missing out on potential gains. This mindset is why many view crypto largely as a store of value rather than a currency. This is why platforms such as <a href="https://nexo.io/" target="_blank" rel="noreferrer noopener">Nexo</a> are innovating ways investors can use their crypto without missing out and paying capital gains each time they make a purchase.</p>



<h3 class="wp-block-heading">How the Nexo card works</h3>



<p>What makes the <a href="https://nexo.io/nexo-card" target="_blank" rel="noreferrer noopener">Nexo card</a> unique is how it incentivizes <a href="https://www.investopedia.com/terms/h/hodl.asp" target="_blank" rel="noreferrer noopener">HODLing</a>. Using Nexo’s proven, crypto-backed lending service, Nexo card holders can utilize a line of credit to make fiat purchases without actually selling their crypto. Not only does it allow them to keep valuable assets, it won’t trigger a taxable event by selling crypto to make fiat purchases as is the case with other crypto cards. And as an added bonus, every transaction with the card pays back up to 2% in crypto rewards.</p>



<h3 class="wp-block-heading">What is crypto-backed lending?</h3>



<p>The way Nexo uses <a href="https://nexo.io/borrow" target="_blank" rel="noreferrer noopener">crypto-backed lending</a> as a line of credit is a first for crypto cards. To understand a little more, here’s how lending works.</p>



<h4 class="wp-block-heading">P2P and trustless</h4>



<p>Unlike in the traditional financial system, crypto-backed loans are peer-to-peer and trustless. You don’t have to apply to a loan institution, have your credit score checked, get approved, or trust a centralized company. If you have collateral, you’re able to borrow. Crypto-back loans tend to be over-collateralized for this reason, opening borrowing opportunities to more people.</p>



<h4 class="wp-block-heading">Automated smart contracts&nbsp;</h4>



<p>Because crypto-back loans use smart contracts which execute automatically, they’re as strong as the code itself. They also have lower fees than traditional loans because there’s no intermediary taking a cut.</p>



<h4 class="wp-block-heading">Maximize purchasing power</h4>



<p>With lower fees and potential for the collateral to appreciate over time, crypto-backed loans maximize purchasing power. If you’re borrowing against your crypto portfolio without selling the underlying asset and its value goes up, your borrowing maximum will also go up.</p>



<h3 class="wp-block-heading">Final considerations</h3>



<p>Fiat isn’t going away yet, and crypto needs to become practical for everyday users. Crypto credit cards are doing that.&nbsp;</p>



<p>As with all investments, there are risks that should be carefully considered. Under-collateralization could trigger loan liquidation and crypto volatility can drive investors to seek higher interest yields, but taking risks into consideration, companies like Nexo are offering new and innovative ways to change the crypto credit card landscape.</p>



<h3 class="wp-block-heading">Related Articles</h3>



<p><a href="https://cms.blockworks.co/the-investors-guide-to-defi/" target="_blank" rel="noreferrer noopener">The Investor’s Guide to DeFi 2.0</a></p>



<p><a href="https://cms.blockworks.co/the-investors-guide-to-yearn-finance/" target="_blank" rel="noreferrer noopener">The Investor’s Guide to Yearn Finance</a></p>



<hr class="wp-block-separator"/>



<p><em>This Investor’s Guide is sponsored by <a href="https://nexo.io/" target="_blank" rel="noreferrer noopener">Nexo</a></em>.</p>



<p><em>The content of this webpage is not investment advice and does not constitute any offer or solicitation to offer or recommendation of any company, product or idea. It is for general educational purposes only and does not take into account your individual needs, investment objectives or specific financial circumstances.</em></p>


The Investor’s Guide to Crypto Credit Cards

Ben Strack

<div id="highlights-block_6193e01553742" class="highlights">
        <ul>
                <li>Crypto platform Voyager surpassed 1 million funded accounts last week and now has 2.7 million registered users</li>
                <li>A customer with the card can spend USDC everywhere debit Mastercard is accepted</li>
            </ul>
    
</div>



<p>Cryptocurrency platform Voyager Digital is set to offer a crypto debit card that pays up to 9% annual rewards to its customers, the firm announced Tuesday.&nbsp;</p>



<p>Called the Voyager Debit Mastercard, the offering provides annual rewards of up to 9% on all USD Coin (USDC) holdings of $100 or more. The rewards are paid monthly, meaning that USDC holders will receive additional USDC in their Voyager accounts based on their average monthly balance.&nbsp;</p>



<p>Voyager customers, who can now pre-register for the debit card, will start receiving their cards in early 2022.&nbsp;</p>



<p>&#8220;By basing our debit card on [USDC], a stablecoin priced one-to-one to the US dollar, we are offering customers a predictable and rewarding way to hold and easily convert crypto for payments, while offering Voyager Loyalty Program members additional rewards,&#8221; Voyager CEO Steve Ehrlich <a href="https://www.investvoyager.com/pressreleases/voyager-digital-announces-the-voyager-debit-mastercard-r" target="_blank" rel="noreferrer noopener">said</a> in a statement. </p>



<p>With the new Voyager card, a customer can swipe and spend USDC everywhere debit Mastercard is accepted, a firm spokesperson told Blockworks. The debit card has no annual fees and customers can swap their cash into USDC at no cost, a spokesperson told Blockworks.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p><strong>“Even though crypto is poised to dominate the future of finance, people still think about the world in terms of dollars,” the Voyager representative said. “USD Coin lets you spend crypto with the familiarity of cash.”</strong></p></blockquote>



<p>The launch coincided with Voyager reporting its third-quarter results. The company’s revenue for the quarter totaled about $66 billion, which was up from $2 million a year ago. An additional $16 billion of revenue came from Coinify, a crypto payment platform that <a href="https://cms.blockworks.co/voyager-digital-acquires-crypto-payment-platform-coinify/" target="_blank" rel="noreferrer noopener">Voyager acquired</a> during Q3.</p>



<p>An operating loss of $28.3 million for Q3 was incurred primarily as a result of Voyager investing in its loyalty and rewards program to continue user growth.</p>



<p>Voyager announced last week that it surpassed 1 million funded accounts, a 2,225% increase from 10 months ago. The company’s number of registered users now totals 2.7 million, up from 1 million in April.</p>



<p>In an effort to continue building its crypto platform, Voyager also <a href="https://cms.blockworks.co/voyager-digital-partners-with-dallas-mavericks/" target="_blank" rel="noreferrer noopener">partnered with the Dallas Mavericks</a> last month to bolster brand awareness and drive cryptocurrency education. </p>



<p>In addition to labeling crypto debit cards as a focus for the company <a href="https://cms.blockworks.co/voyager-looking-to-enter-nft-space-in-2022-ceo-says/" target="_blank" rel="noreferrer noopener">during a recent earnings call</a>, Voyager CEO Steve Ehrlich had said international expansion and entering the NFT space are also priorities for the firm.</p>



<hr class="wp-block-separator"/>



<p><strong>Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.</strong></p>



<hr class="wp-block-separator"/>


Voyager Digital to Debut Crypto Debit Card

Sam Martin

<div id="highlights-block_6166f7eb1253d" class="highlights">
        <ul>
                <li>BlockFi credit card holders spend more than $30,000 per year on average, 500% higher than the average of $5,000 per year on all Amex, Mastercard, and Visa cards in the US</li>
                <li>Costco, Amazon, and Home Depot are the top three merchants where BlockFi cardholders are spending the most </li>
            </ul>
    
</div>



<p>Just three months ago BlockFi, a popular place to buy, sell, and earn various cryptocurrencies, <a href="https://blockfi.com/blockfi-announces-launch-of-the-blockfi-rewards-credit-card-to-us-waitlist" target="_blank" rel="noreferrer noopener">launched</a> a Visa-backed credit card. The insights from the first 90 days of the rollout are eye-popping.&nbsp;</p>



<p>According to a company press release, the average BlockFi cardholder is on track to spend $30,000 per year. Based on publicly available operational performance data from <a href="https://s1.q4cdn.com/050606653/files/doc_financials/2021/q3/Visa-Inc.-Q3-2021-Operational-Performance-Data.pdf" target="_blank" rel="noreferrer noopener">Visa</a>, <a href="https://s25.q4cdn.com/479285134/files/doc_financials/2021/q2/2Q21-Mastercard-Supplemental-Operational-Performance-Data.pdf" target="_blank" rel="noreferrer noopener">Mastercard</a> and <a href="https://s26.q4cdn.com/747928648/files/doc_financials/2021/q2/Q2-2021-Earnings-Tables.pdf" target="_blank" rel="noreferrer noopener">AMEX</a>, the average annual card spend per user is only $5,000.&nbsp;</p>



<p>The top three merchants where cardholders are spending include Amazon, Home Depot and Costco. BlockFi’s initial analysis shows that users&#8217; habits include things ranging from everyday grocery shopping and utility payments to large purchases related to major life events, such as one consumer who spent over $20,000 at Tiffany’s.</p>



<p>Based on current spending and projections, BlockFi cardholders are pacing at over $2 billion dollars USD in annualized spending.&nbsp;</p>



<p>To compare, in 2020, Visa, Mastercard, Discover and AMEX generated <a href="https://nilsonreport.com/publication_newsletter_archive_issue.php?issue=1191" target="_blank" rel="noreferrer noopener">$6.479 trillion in purchase volume </a>on company issued cards. Thus rendering a huge market opportunity for crypto native companies.&nbsp;</p>



<p>Despite these numbers, <a href="http://offers.worldpayglobal.com/rs/850-JOA-856/images/GPR-2020.pdf?mkt_tok=eyJpIjoiWm1SalpEUXhOelEyWkdZeiIsInQiOiJXbXVmdHZ4OFJuNXlyM2cxbWRMUGliZThRU044RnBQbUVZdGJkdDNrdUxkMU1SSGl3NmRGOVFsSXhlRDVuV1dvNXFaSTVra2ZJZFFZWmI4SUN3R0ZkQ3h2M2IrUktLOHcrZGhBaHduN2FidmlPRWpNYlBLMFJmYUFUaXpPQ0ZzYiJ9" target="_blank" rel="noreferrer noopener">according</a> to a Worldpay report, the growth of credit/debit card usage is expected to slow through 2023, mainly due to the rise of buy-now-pay-later (BNPL) and the use of mobile wallets.&nbsp;</p>



<p>The BlockFi credit card is held by over 50,000 residents in the US across 49 states and Washington D.C. (The credit card is not available for residents of the state of New York.)</p>



<p>Per BlockFi’s <a href="https://blockfi.com/credit-card/" target="_blank" rel="noreferrer noopener">website</a>, cardholders can earn 1.5% cash back in bitcoin on every purchase with no annual fee or effect on one’s credit score when applying. 2% is awarded to purchases made when annual spend exceeds $50,000.&nbsp;</p>



<p>Over 124 bitcoin, or roughly $7 million at the current bitcoin price, have been earned by cardholders to date.</p>



<p>“BlockFi cardholders who were paid out rewards at their 3.5% intro rate earned an effective rate of over 4.25%,” BlockFi told Blockworks. “While customers earning the standard 1.5% back were earning a 1.8% effective rate due to Bitcoin&#8217;s recent price appreciation”.</p>



<p><a href="https://www.coinbase.com/card" target="_blank" rel="noreferrer noopener">Coinbase</a> also has a Visa debit card offering that promises up to 4% cash back in crypto and no annual fee. They also allow users to spend cryptocurrencies from their coinbase wallets. The debit card was rolled out towards the tail end of 2020, but Coinbase declined to comment on any usage metrics for now.&nbsp;&nbsp;</p>



<p>It appears that many card holders may prefer the debit card rewards over the credit card rewards, according to <meta charset="utf-8">Ben Price of The Bitcoin Company. “They are seeing users move their spending off credit (traditional) rewards cards to debit (Bitcoin) rewards cards which is not a &#8216;normal&#8217; customer behavior,&#8221; he told Blockworks. “Typically credit cards are the best for rewards, not debit or prepaid debit.”</p>



<p>“We’re seeing wallets and crypto native neo-banks building payment products entirely with digital currency, and we want to meet these companies where they are,” Cuy Sheffield, Visa’s head of crypto <a href="https://cms.blockworks.co/visa-partners-with-50-crypto-platforms-on-card-programs/" target="_blank" rel="noreferrer noopener">previously</a> told Blockworks. “The ability to make settlement payments to Visa in digital currencies could offer meaningful benefits and efficiencies, particularly for fintechs who run their business in crypto.”</p>


Average BlockFi Credit Card Holder on Track to Spend $30K Per Year

<div id="highlights-block_60e73462523e0" class="highlights">
        <ul>
                <li>While consumers&#8217; interest in owning crypto assets is growing, the number of merchants directly accepting payments on blockchains remains small</li>
                <li>Partnerships come as regulators are cracking down on exchange and fiat on-ramps, due to anti-money laundering and other concerns</li>
            </ul>
    
</div>



<p>Consumers spent more than $1 billion worth of cryptocurrency on goods and services through Visa’s crypto-linked cards in the first half of 2021, Visa recently reported. The company is partnering with 50 crypto platforms on card programs that allow users to convert and spend digital currency at 70 million merchants.</p>



<p>The value of crypto assets held in regulated digital wallets has reached hundreds of billions, and a Visa card is one of the simplest ways to spend crypto, <a href="https://usa.visa.com/visa-everywhere/blog/bdp/2021/07/06/crypto-linked-cards-see-1625612645562.html">the company said in a recent blog post</a>.&nbsp;</p>



<p>Cuy Sheffield, Visa’s head of crypto, said that the large majority of the company’s crypto platform partners are coming through Visa’s <a href="https://partner.visa.com/site/programs/fintech-program.html">Fintech Fast Track Program</a>, which provides access to a network of enablement partners and startup incentives to launch and expand card programs. A quarter of the companies in Visa’s North America Fast Track program are currently working to issue crypto-linked cards, he added.</p>



<p>In March, Visa <a href="https://cms.blockworks.co/visa-bets-big-on-digital-assets-integration-with-usdc-ethereum-support/">announced the use of USDC</a>, a stablecoin backed by the US dollar, to settle a transaction with Visa over the ethereum blockchain.</p>



<p>“We’re seeing wallets and crypto native neo-banks building payment products entirely with digital currency, and we want to meet these companies where they are,” Sheffield told Blockworks. “The ability to make settlement payments to Visa in digital currencies could offer meaningful benefits and efficiencies, particularly for fintechs who run their business in crypto.”</p>



<p>In May, research published by Visa’s competitor, Mastercard, found that 93% of people across 18 global markets said they would consider using at least one emerging payment method &#8211; such as cryptocurrency, biometrics, contactless or QR code &#8211; in the next year. According to the survey, 71% of people said they expect to use cashless payments moving forward.</p>



<p>Overall, 40% of people surveyed said they plan to use cryptocurrency in the next year, the report added, with two-thirds of millennials agreeing they are more open to using cryptocurrency than they were a year ago.</p>



<p><a href="https://cms.blockworks.co/gemini-mastercard-to-launch-crypto-rewards-card/">Earlier this year, Gemini announced</a> that it had made Mastercard the exclusive card network of its crypto rewards card, with which cardholders earn 3% back in the cryptocurrency of their choice. BlockFi <a href="https://cms.blockworks.co/blockfi-releases-visa-rewards-credit-card-to-us-clients/">unveiled its Visa rewards credit card</a> for a handful of its US-based clients this week.</p>



<h3 class="wp-block-heading">An evolving era </h3>



<p>While consumers’ interest in owning crypto assets is rising, the number of merchants willing to directly accept payments on blockchains remains small, Sheffield noted. Having a Visa card linked to your crypto balance adds the ability to fund purchases and manage expenses instantly, he argued.&nbsp;</p>



<p>Visa’s efforts come as regulators are cracking down on exchange and fiat on-ramps due to anti-money laundering and know-your-customer concerns. Barclays recently stopped its customers in the United Kingdom from transferring funds to <a href="https://www.binance.com/en">Binance</a> after the <a href="https://cms.blockworks.co/uk-fca-binance-ban-not-prohibiting-british-traders/">Financial Conduct Authority warned</a> that subsidiary Binance Markets Limited was not permitted to undertake any regulated activity in the country.&nbsp;</p>



<p>“Visa also acts on behalf of the card issuers and those issuers may have their own independent risk parameters,” Michael Del Grosso, a research analyst at Compass Point Research &amp; Trading, told Blockworks. “Barclays took independent action against Binance, but you could easily see either more issuers make a similar move or the card networks move in on it as well.”</p>



<p>Infrastructure to support the retail and broader banking effort is still being put in place, Del Grosso added.&nbsp;</p>



<p>Separately, the National Cash Register and digital asset management firm NYDIG <a href="https://cms.blockworks.co/nydig-and-ncr-bringing-bitcoin-to-the-people/">partnered last week</a> to allow 650 US-based banks and credit unions to offer crypto trading services and bitcoin purchases, Blockworks previously reported. That followed an <a href="https://cms.blockworks.co/nydig-and-fiserv-team-up-to-put-bitcoin-in-consumers-bank-accounts/">announcement by NYDIG and Fiserv</a> that they would team up to help consumers get bitcoin into their bank accounts without going through an external exchange.</p>



<p>Though all US retail banks are subject to stringent regulations, Del Grosso explained, integrations can lead to differentiation, such as USAA’s integration with Coinbase to allow members to view their Coinbase wallet balances.</p>



<p>“Longer-term I think the companies that have the largest head-start on the retail side are the emerging fintechs and crypto companies offering interest on USDC and other fiat-backed stablecoins,” Del Grosso said. “[Or] crypto-backed reward credit cards, which could eventually be a threat to larger banks.”</p>
