Cryptocurrency platforms are expanding beyond trading into daily payments by launching Visa-linked cards. RedotPay introduced an XRP Ledger-powered card allowing its 8 million users to pledge XRP at a 50% loan-to-value ratio to borrow Ripple's RLUSD stablecoin. Meanwhile, BingX launched its Visa debit card in Mexico, and BloFin Wallet introduced a Visa card with zero fees. While these cards offer spending convenience without selling assets, critics warn of liquidation risks during market drawdowns.
Cryptocurrency Visa card launches
- ▪RedotPay launched an XRP Ledger-powered card combining XRP-backed credit, Ripple's RLUSD stablecoin, and Visa's network.
- ▪RedotPay has more than 8 million users across over 100 countries and roughly $12 billion in annualized volume.
- ▪BloFin Wallet launched the BloFin Wallet Card, a Visa card allowing users to spend digital assets with zero issuance or annual fees.
- ▪BingX announced the launch of the BingX Visa Debit Card in Mexico, emitted by Wirex and backed by Visa.
XRP-collateralized credit mechanics
- ▪The RedotPay card allows users to spend credit at any Visa merchant while keeping their underlying XRP price exposure intact.
- ▪RedotPay card users pledge XRP as collateral at a 50% loan-to-value ratio to receive a credit line settled in RLUSD.
Undisclosed liquidation terms
- ▪RedotPay's launch materials do not disclose borrowing costs, liquidation thresholds, or what happens to pledged collateral during a market drawdown.
- ▪The custody arrangements and whether pledged XRP collateral is rehypothecated or held bankruptcy-remote remain unpublished by RedotPay.
RLUSD distribution via XRPL
- ▪The RedotPay card is the first mass-market consumer product that routes RLUSD stablecoin settlement directly through the XRP Ledger.
- ▪RLUSD circulation has historically concentrated on the Ethereum blockchain rather than its home ledger, the XRP Ledger.
Crypto-backed lending precedents
- ▪Historical crypto-backed lending platforms like Celsius and BlockFi failed due to treasury-layer issues, rehypothecation of collateral, and duration mismatches.
- ▪Traditional securities-backed lending represents roughly a $150 billion book at major United States wirehouses.
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