Borrowers in the U.S. can now get funds with a DeFi-powered Visa card by Swipe.
Swipe, a Binance-owned cryptocurrency debit card provider, is expanding its offering with a new crypto Visa card that allows users to borrow funds using blockchain technology.
Dubbed the “LendFi Visa Card,” the new product deploys major decentralized finance protocols to provide “near-instant access to lending balances.” The card is integrated with the LendFi app — a decentralized lending platform that is connected with the borrower through their mobile device. At launch, the platform will support major DeFi protocol Compound, a spokesperson for Swipe said.
According to an announcement, the new blockchain-based lending platform approves loans for users and disburses them to accounts. The LendFi App also offers a stablecoin aggregator so users can deposit various stablecoins to spend via their card.
Swipe developed the card with California-based payments company Marqeta. Marqeta vice president of business development Salman Syed said that the card enables lenders to issue a loan directly onto a card, which extends the company’s efforts to “remake the lender-borrower relationship.”
Virtually-issued LendFi Visa Cards are available for borrowers in the U.S. by downloading the LendFi app, signing up and completing identification procedures. After applying for a LendFi Visa Card virtually, users can order a physical card. The card will also offer 4% cashback on all purchases.
Cryptocurrency lending is one of the most important use cases for the DeFi industry. In contrast to traditional finance, DeFi lending does not need a central party or a middleman to approve and distribute loans, as DeFi loans are issued through a distributed system and decentralized applications. Still, decentralized lending is associated with certain risks as it is still not 100% secure.
This article originally appeared on cointelegraph
Journalist
Cointelegraph
Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.
