Tyler Winklevoss, Gemini Co-Founder & CEO, shared the news his company has a new way to invest in crypto via an official announcement made on January 14th.
The cryptocurrency exchange has announced a new line of products with its own fiat credit card, which will allow holders to gain rewards in Bitcoin or other cryptocurrencies.
One of the most surprising facts about the announcement is that this new credit card will work with fiat dollars instead of crypto despite the company’s status as a crypto exchange.
Crypto Rewards with a Fiat Credit Card at Gemini
Gemini’s card is not a debit card but a credit card, similar to the card announced by BlockFi back in December of 2020, making these 2 cards the first to offer rewards in the form of crypto/investable assets instead of traditional cashback, miles, or similar rewards.
It is not clear which of both cards will be launched first, with BlockFi announcing the launch for “spring 2021” while Gemini’s will launch “Later in 2021”. Both companies have opened their waiting lists for users interested in applying.
Investing in Crypto by Spending in Fiat
Gemini’s new credit card will allow holders to earn up to 3% back in cryptocurrencies like Bitcoin for every dollar that is spent with it, although no information on what other cryptocurrencies will be supported has been published.
This option to passively invest in cryptocurrency while paying for daily services and commodities is sure to be attractive for thousands of investors, especially at a time when other credit card’s rewards are not that useful due to the Covid19 pandemic.
Those interested in obtaining the credit card won’t be required to have a Gemini at the time but will need to create an account to receive their rewards automatically once the card is approved.
The card is planned to launch in the United States, which means that only U.S. residents will be able to use it. It is still not clear if there are plans to launch the card in other countries.
Despite rising regulations on financial transactions, there are still few global mechanisms that allow companies to expand to multiple nations.
Fintech Startups are Helping Shape the Future of Crypto
Just like some of its competitors, Gemini has been able to launch its new service after acquiring a fintech startup by the name of Blockrize, which was already working on the same concept.
All of Blockrize’s waitlist members have been transferred to Gemini’s credit card waitlist as it will be the same product once it launches.
While it is known that the card will run with one of the major payment networks and be accepted in any store where major cards are accepted, it is still not known if the credit card will be in collaboration with Visa, MasterCard, Amex, or another network.
The move comes at a time when the Gemini exchange continues expanding its portfolio of services, such as with the acquisition of Nifty Gateway back in late 2019 and partnerships with Brave browser in 2020.
Gemini Custody has also seen increasing popularity with crypto enthusiasts, having surpassed $10 billion in total crypto under its custody back on January 12th according to the company.
While 2020 certainly was a big year for the cryptocurrency ecosystem, there are still barriers that need to be broken before mass adoption is possible. Allowing people to invest in Bitcoin passively without the need for financial or technical knowledge, as well as no risk, is a big step toward this objective.