Cryptocurrency exchange company Gemini is acquiring Blockrize and announcing a new product today based on Blockrize’s work. Later this year, the company is launching a credit card that works like a regular credit card — but you earn bitcoin rewards based on your purchases.
The credit card will work like any other credit card and will be available in the U.S. Customers will earn up to 3% in bitcoin rewards (again, up to 3%). You’ll be able to earn other crypto assets as well. Those rewards will be deposited on your Gemini account.
This isn’t the first time a company is announcing a credit card with bitcoin rewards. BlockFi already announced its own card back in December. Both companies have yet to launch their cards.
As a comparison, BlockFi promises 1.5% rewards on purchases in fiat currencies. There’s a $200 annual fee, but you get $250 back if you spend at least $3,000 with the card in the first three months.
This new category of credit cards could be interesting for people who want to slowly acquire cryptocurrencies without going through an exchange. Similarly, some crypto enthusiasts don’t want to use a debit card tied to a cryptocurrency wallet as they don’t want to spend their crypto assets — HODL, as they say.
You could consider those credit cards as an alternative to credit cards that give you cash back. Sure, you don’t get points that you can exchange for perks. But you get crypto assets without having to think about it.
Gemini customers can sign up to the waitlist today. Blockrize has been working on a credit card for some time. While it is now part of Gemini, people who previously signed up to Blockrize’s waitlist are still on the waitlist.