Ether.Fi to Launch Visa 'Cash' Card on Scroll Network

The credit card from Ether.fi will reward 3% cash-back and let users borrow money against their crypto collateral.

Ether.fi, known for its liquid restaking service, has announced a new blockchain-based credit card, Ether.fi Cash, in collaboration with Scroll, a layer 2 network on Ethereum. The card aims to provide users with the ability to spend fiat while utilizing their crypto assets as collateral.

Ether.fi Cash is currently available for pre-order, and according to a press release from Ether.fi, Cash users will receive a 3% cash-back incentive on all transactions, with no restrictions. The card, which will be issued as a physical Visa credit card, is designed to be compatible with mobile payment providers like Apple Pay.

In an interview with CoinDesk, Mike Silagadze, co-founder of Ether.fi, described the card's target audience as initially comprising crypto enthusiasts and those engaged in decentralized finance (DeFi).

“The first, probably 10 to 20,000 people, are going to be crypto 'degens,' like DeFi, crazy people,” Silagadze said.

The card's DeFi integration will reportedly enable users to borrow against their crypto collateral, expanding the card's functionality beyond simple fiat purchases.

According to Silagadze, the card's DeFi lending feature is particularly advantageous when used in conjunction with lending platforms like Aave on Scroll.

“If you put 10 Ethereum into Aave and you use this credit card, then for you it's going to be the cheapest credit card in the world that you can find,” Silagadze said.

Ether.fi Cash is not the first attempt by the crypto industry to create a credit card, with previous efforts failing to achieve widespread mainstream adoption. However, Ether.fi and Scroll are optimistic that Ether.fi Cash will encounter a different fate.

Silagadze's aspirations extend beyond crypto users, aiming to eventually pique the interest of non-crypto users as well.

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

“I think it's the first time I've been able to get my friends who are outside of crypto interested” in a crypto product, Scroll co-founder Sandy Peng added. “It's genuinely a better credit card product” rather than just "a better crypto product."