Ether.fi, the cutting-edge non-custodial liquidity staking protocol, has announced the opening of Ether.Fi Cash, a new project that aims to combine users’ ether.fi holdings with actual financial transactions.
Ether.fi Cash is going to be a mobile wallet and Visa credit card that allows users to borrow USDC, the well-known stablecoin pegged to the US dollar, against their investments in decentralized finance (DeFi) and pay them back directly using cryptocurrency.
Ether.fi CEO Mike Silagadze stated, “Our mission is to build a suite of integrated apps that make DeFi actually usable for normal people.”
Ether.fi Cash cardholders can borrow money against their liquid or stake deposits, and they can use the interest earned from such investments to autopay their bills. An immediate settlement option is provided by the ability for users to convert assets straight into USDC.
Silagadze explained that with Cash, users only need to onboard onto Ether.fi once, eliminating the need for frequent off-ramping. This platform enables individuals to save, invest, and spend their money seamlessly.
They can receive crypto payments and conduct their daily transactions without relying on the traditional financial ecosystem. Ether.fi strives to introduce a crypto-oriented rewards program similar to those offered by established card providers like Chase.
Furthermore, it distinguishes itself from conventional credit cards by adopting a fee structure aligned with the DeFi market, diverging from the typical 15-30% APR associated with traditional credit cards.
Although Cash is not the first attempt at a cryptocurrency-based card, Silagadze is adamant that other iterations of such products have been nothing more than “garbage.”
He noted that the majority of them are Visa debit cards, which he finds impractical. Visa debit cards serve limited purposes such as hotel bookings and car rentals, rendering them ineffective for many other transactions.
Although he anticipates that Cash will be available to consumers in September, it is unlikely that Cash will be offered in other major regions, such as the United States, due to regulatory concerns.
Silagadze underlined, “This is an actual credit card.”
Also Read: Ether.fi Launches ETHFI Token Airdrop With Community-Centric Adjustments
