Kraken, the 14-year-old crypto exchange, is launching a new Mastercard debit card for its UK and European users. On Tuesday, the company announced that the Krak card will offer up to 1% cash back rewards, denominated in cash or Bitcoin, with no forex or monthly fees. Krak is the exchange’s mobile app. The card’s launch comes as Kraken also expands Vaults, an in-app savings feature which lets users earn up to 10% yield on their holdings. Kraken’s rollout is just the latest in a growing list of crypto com ...

Core Insights - A new initiative in the US involves 160 individuals receiving $12,000 in cryptocurrency over five months, aimed at providing direct financial support to low-income young adults [1][2] Group 1: Program Details - Participants are aged 18 to 30 and based in New York, receiving an initial $8,000 in USDC stablecoin, followed by five installments of $800 each [2] - The program is a collaboration between Coinbase and GiveDirectly, which has distributed $95.5 million to over 140,000 people in the past year [1] Group 2: Objectives and Benefits - The primary aim is to enhance financial wellbeing, housing stability, and educational opportunities for participants [2] - The initiative also seeks to evaluate the effectiveness of larger lump sum payments and the efficiency of USDC in terms of delivery and administrative costs [2][3] - Early advantages noted include faster cash access for recipients due to the nature of USDC payments [2] Group 3: Cost Efficiency - The cost of issuing USDC payments is minimal, with only $0.26 spent to issue the first 160 $800 payments, making it significantly cheaper than traditional prepaid debit cards [3] - Cost savings allow for more funds to be directed to recipients [3] Group 4: Flexibility and Financial Inclusion - Participants were informed about potential downsides of investing in volatile cryptocurrencies, but they are not restricted from converting USDC into other cryptocurrencies [4] - The program offers flexibility, allowing recipients to transfer funds to bank accounts, use a Coinbase debit card, or keep funds in a wallet earning 4.1% interest [4]

Core Viewpoint - Coinbase is evolving from a trading platform to a fintech "super app" aiming to replace traditional banks, as stated by CEO Brian Armstrong [1] Group 1: Coinbase's Strategy - Coinbase intends to provide a comprehensive range of financial services, positioning itself as a primary financial account for users [1] - The company has launched a debit card in partnership with Visa and plans to become an "everything exchange," allowing trading in crypto securities, commodities, and traditional stocks under a single license [7] - Armstrong aims to streamline custody rules, enable tokenization of equities, and create exemptions for projects to launch without burdensome registration [7] Group 2: Regulatory Environment - The Genius Act, signed into law by US President Donald Trump, poses a potential risk to traditional banks by threatening to drain $6 trillion in deposits [2] - Armstrong expressed confidence that the senators are unlikely to revisit the issue, indicating a growing tension between traditional financial institutions and crypto companies [2] - The Trump administration has taken several pro-crypto actions, including appointing crypto supporters to key government positions and launching Project Crypto, which aims to deregulate and encourage the integration of crypto and traditional assets [3][4] Group 3: Competitive Landscape - The term "super app" refers to platforms that aim to provide a one-stop shop for various financial services, including payments and banking [5] - Fintech firms like Robinhood and Revolut have introduced similar all-in-one super apps, incorporating crypto trading, which puts them in direct competition with crypto companies [6] - Crypto firms are responding by offering services traditionally associated with fintech firms, indicating a convergence of the two sectors [6]