Swipe, a cryptocurrency debit card provider, has expanded its offering with a new crypto Visa card named “LendFi Visa Card” that allows users to borrow funds using blockchain technology.
It has been reported that the new product deploys major decentralized finance protocols to provide “near-instant access to lending balances.”
However, the card is integrated with the LendFi app, a decentralized lending platform that is connected with the borrower through their mobile device.
A spokesperson for Swipe said that the platform will support major DeFi protocol Compound at launch.
Swipe is thrilled to announce it has partnered with Marqeta, a payments unicorn, to launch @LendFi, an instant Virtual #Visa card in the 🇺🇸 that can be immediately tokenized and linked to #Apple Pay & #Google Pay built for real time #DeFi lending access powered by #Swipe Issuing pic.twitter.com/oemtRLyxw7 — Swipe (@SwipeWallet) September 30, 2020
The report said that the new blockchain-based lending platform approves loans for users and disburses them to accounts. The LendFi App also offers a stablecoin aggregator so users can deposit various stablecoins to spend through their cards.
Swipe developed the card with California-based payments company Marqeta.
Salman Syed, the Vice President of Business Development at Marqeta, said that the card enables lenders to issue a loan directly onto a card, which extends the company’s efforts to “remake the lender-borrower relationship.”
Likewise, virtually-issued LendFi Visa Cards are available for borrowers in the US by downloading the LendFi app, signing up, and completing identification procedures. After applying for a LendFi Visa Card virtually, users can order a physical card. The card will also offer a 4% cashback on all purchases.
Cryptocurrency lending is one of the most important use-cases for the DeFi industry.
Thus, DeFi lending does not need a central party or a middleman to approve and distribute loans, as DeFi loans are issued through a distributed system and decentralized applications.
Source: Cointelegraph