Crypto finance firm Swipe launches Visa DeFi lending card

Borrowers in the U.S. can now get funds with a DeFi-powered Visa card by Swipe.

Swipe, a Binance-owned cryptocurrency debit card provider, is expanding its offering with a new crypto Visa card that allows users to borrow funds using blockchain technology.

Dubbed the "LendFi Visa Card," the new product deploys major decentralized finance protocols to provide "Near-instant access to lending balances." The card is integrated with the LendFi app - a decentralized lending platform that is connected with the borrower through their mobile device.

The LendFi App also offers a stablecoin aggregator so users can deposit various stablecoins to spend via their card.

Swipe developed the card with California-based payments company Marqeta.

Marqeta vice president of business development Salman Syed 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."

Virtually-issued LendFi Visa Cards are available for borrowers in the U.S. 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 4% cashback on all purchases.

In contrast to traditional finance, 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.