Ether.fi, a protocol for liquid restaking, is introducing a “crypto-native” credit card that will process transactions on Scroll, an Ethereum layer-2 scaling solution, according to a September 9 update on X.
The Ether.fi Cash card is a Visa credit card that allows users to make payments with cryptocurrency wherever Visa is accepted. The card, which is available in tiers named Pepe, Wojak, Chad, and Whale, is described as “non-custodial,” meaning that users’ crypto remains in their wallets rather than being moved to a different account. Cardholders can use their crypto assets, including eETH (an Ether.fi liquid restaking token), Liquid vault LP tokens, and other yield-bearing assets, as collateral for purchases.
Ether.fi Cash promotes itself as a “truly crypto-native” credit card. Scroll highlighted that integrating DeFi functionality with a credit card allows users to retain their crypto while leveraging it more effectively.
The market for crypto-friendly payment cards is growing, driven by seamless conversions between stablecoins like USD Coin (USDC) and fiat currency. Prominent offerings in this space include cards from Coinbase, Crypto.com, Gemini, and the on-chain wallet provider Gnosis.
In 2023, the crypto credit card market was valued at $97 billion and is projected to reach around $152 billion by 2030, according to Verified Market Research. However, credit cards associated with DeFi protocols are still relatively rare.
Ether.fi, launched in 2023, allows users to stake Ether (ETH) and its liquid staking derivatives like Lido Staked Ether (stETH) into “restaking” pools in exchange for tradable LRTs. The protocol has accumulated over $5.5 billion in total value locked (TVL), as reported by DefiLlama.
Restaking involves using tokens that are already staked as collateral with a validator to secure additional protocols simultaneously. EigenLayer is the most prominent restaking protocol, managing nearly $11 billion in TVL, followed by others such as Symbiotic and Karak.
Ether.fi’s CEO, Mike Silagadze, mentioned on August 13 that the “risk of restaking has not been fully characterized yet,” noting that current yields are largely speculative and not based on substantial activity.
