Swipe launches VISA card based on DeFi loans

Swipe, a subsidiary of Binance, announced the launch of a new VISA card. It will allow the use of DeFi protocols to borrow funds.

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A Swipe card that combines DeFi and traditional finance

The news was announced yesterday in a company statement. Swipe explains that the release of this Visa DeFi card was made possible through a partnership with Marqeta, a service provider for payment cards. The card, which has been dubbed as “LendFi Visa Card”, allows “almost instant access to loaned funds”.

For this, the card is integrated into the LendFi application, which was also created by Swipe. It is described as a decentralized borrowing platform. A user can connect to it from their mobile easily, then the system approves or disapproves the loan. The funds are then released very quickly, according to Swipe.

Notably, the platform has a “stablecoins aggregator”. It allows several types of dollar-backed stablecoins to be deposited at a 1: 1 ratio, to be used together to fund the card.

At this time, the card is only available to users located in the United States. In addition to providing access to DeFi protocols, it offers 4% cashback on all purchases.

How far will Swipe go?

The redemption Binance Swipe through the month of July seems to have given a boost to the business. To mark the start of this collaboration, Swipe announced a $16 million SXP airdrop in August. Moreover, the company’s breakthrough in the United States is still very recent. It was initiated a few weeks ago, at the same time as the arrival of the Binance Card.

Swipe will therefore be a name to watch closely over the next few months. With not only the support of the hegemonic Binance, but the company is also launching into a highly coveted and particularly dynamic sector with decentralized finance. We should therefore continue to hear from it.