Coinbase is rolling out a new Bitcoin-backed credit card and launching two US-based crypto futures contracts on July 21, aimed at deepening the exchange’s footprint in both consumer spending and derivatives trading. But unlike cashback cards from traditional banks, this product reportedly gives users crypto, and unlike global futures markets, this product follows US rules. The new credit card, expected to drop this fall, will let users earn up to 4% back in BTC every time they swipe. But there’s a gate: you’ll need to subscribe to Coinbase’s premium trading service to even apply. Rewards go directly into your Coinbase account, not through third-party processors. This setup is designed to appeal to those already in the ecosystem, but not everyone’s on board. New card offers Bitcoin rewards, but comes with strings The idea of crypto rewards isn’t original. Exchanges like Gemini and Crypto.com already offer similar cards. But what makes this one different is the underlying asset, Bitcoin, and how volatile that can get. With cashback, what you earn is steady. With crypto, your 4% could spike or tank depending on what the market does. So you’re low-key investing, whether you like it or not. That risk comes on top of standard credit card hazards: high interest, debt buildup, and personal data exposure. Coinbase says its platform has never lost any customer funds to wallet breaches, and that card rewards are deposited into Coinbase wallets, not external providers. Gemini confirmed that rewards go into a Gemini wallet with full platform-level security. Some long-timers in the crypto space aren’t feeling it though. Graham Friedman, who leads crypto venture deals at Republic, isn’t sold. “I got into bitcoin in 2012 and a lot of it was about privacy, libertarianism, etc. And credit cards, by nature, swap your private information across a variety of companies,” Graham said . He added that for someone like him, who travels for work, airline cards with seat upgrades and miles are a better fit. “I can just go buy my own investment assets.” Still, for others, the idea of stacking BTC through normal purchases feels like an easy win. Buying coffee, booking flights, paying bills, etc., all become part of a long-term crypto strategy. That’s the appeal Coinbase is apparently banking on. Bitcoin and Ethereum futures trading go live July 21 On the derivatives side, Coinbase announced the launch of two US-based perpetual-style futures contracts through its Coinbase Derivatives Exchange. These will go live on July 21 and include a nano Bitcoin contract at 0.01 BTC and a nano Ether contract at 0.10 ETH. These aren’t just any contracts—they’re designed to function like global perpetual futures but under US regulatory oversight. Futures like this have already taken over international crypto markets. In some cases, they account for over 90% of total crypto trading volume. But until now, Americans have had to go offshore to trade them. That workaround adds extra baggage—custody concerns, regulation issues, counterparty risk. Coinbase says this new product removes all that friction by offering a legal, domestic alternative with the same trading perks. The contracts are built with five-year expirations and will trade 24/7. They include a funding rate mechanism that keeps the futures prices synced with the spot market. Funding builds up every hour, then settles twice per day. At each settlement point, the funding collected is either credited or debited to the trader’s account based on their position. The goal, Coinbase says, is to offer the feel of spot trading while still giving access to leverage, capital-efficient trading, and regulated clearing. The contracts are small, so traders can size their positions with more precision. No need to overexpose just to get in the game. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
