Binance is the largest cryptocurrency exchange. Interestingly, a cryptocurrency debit card provider owned by Binance is expanding its offering thanks to a new crypto Visa card. This card allows users to borrow funds using blockchain technology.
Importantly, the new product is using major decentralized finance protocols to provide near -instant access to lending balances. People should keep in mind that, the card is in full integration with the LendFi app. As a reminder, the LendFi app is a decentralized lending platform that is connected with the borrower through their mobile device.
According to the information provided by Swipe, in the beginning, the platform will support major DeFi protocol Compound.
Crypto card and Marqeta
Interestingly, the new blockchain-based lending platform approves loans for users and disburses them to accounts. It is worth mentioning that, the LendFi app also offers a stablecoin aggregator. As a result, users can deposit stablecoins to spend via their card.
Importantly, a Binance-owned cryptocurrency debit card provider developed the card with California-based payments company Marqeta. The card enables users to issue a loan directly to a card. Marqeta wants to change the lender-borrower relationship.
People who would like to learn more about that card should remember that virtually-issued LendFi Visa Cards are available for borrowers in the U.S. They have to download LendFi app. Moreover, they need to complete the registration process.
Interestingly, after applying for a LendFi Visa card, users have the option to order a physical card. Moreover, the card will also offer a 4% cashback on all purchases.
Last but not least, cryptocurrency lending is one of the most important use cases for the DeFi industry. Importantly, DeFi lending does not need a central party or a middleman to approve and distribute loans. DeFi loans are issued through a distributed system and decentralized applications. However, there are certain issues as well.