BlockFi Credit Card – Best Alternatives for The Discontinued Card

A Quick Overview of the BlockFi Credit Card

The BlockFi Visa card was a credit card that offered users 1.5% cashback rewards on all purchases, denominated in Bitcoin.

At the time of its launch, nearly all Visa and Mastercard crypto offerings were debit cards. The BlockFi Visa was unique because it functioned like a traditional credit card common in the established financial system while allowing users to accumulate Bitcoin through its cashback rewards program.

The card was closely tied into BlockFi’s overall banking platform, and rewards were automatically deposited into a user’s associated interest account.

Why the BlockFi Card Is No Longer Active

BlockFi was a crypto lending platform operating on a CeFi (centralized finance) model that offered high-yield interest returns on user crypto deposits.

The platform generated revenue by lending these funds primarily to institutional borrowers like hedge funds and trading firms.

The company faced a crisis when the crypto hedge fund Three Arrows Capital (3AC) defaulted on a large loan, resulting in significant debt. This financial pressure was worsened by challenging market conditions and a prior SEC settlement related to unregistered securities.

To survive, BlockFi secured a $400 million revolving loan from the cryptocurrency exchange FTX. However, FTX’s collapse in November 2022 due to BlockFi’s major exposure, including a $275 million unsecured loan, ultimately forced the platform to file for Chapter 11 bankruptcy that same month.

The impact of their bankruptcy was devastating. Users lost their trust in the platform, had their accounts frozen, and faced a complex process for getting their funds back. The court deemed customers who held crypto in non-interest-earning wallet accounts the legal owners and allowed them to recover $297 million.

Users of the high-yield Interest Accounts (BIAs) lost ownership of their assets to the exchange, making them general unsecured creditors.

The company finally filed for bankruptcy in November 2022. As of 2022, BlockFi’s services are no longer available to users. This left the users of the platform searching for a viable alternative.

Why smart investors choose Gemini's card over others

The credit card is one of the most user-friendly and rewarding ways to earn crypto on everyday spending. Users can earn up to 3% back in crypto on dining, 2% back on groceries, and 1% back on all other purchases. Rewards are instantly deposited into the users’ exchange account, so there’s no waiting for monthly statements.

Rewards can be chosen from more than 60 cryptocurrencies, including stablecoins, Ethereum, Bitcoin, and Solana. This ultimately gives users control over how they diversify their rewards.

The service is provided with no annual fees, making it a competitive choice for both casual spenders and crypto enthusiasts who live in the United States (except Hawaii). WebBank issues the card, making it part of the Mastercard network. This means it benefits from robust security tools like two-factor authentication and instant transaction alerts.

Standard KYC verification is required to use the card to ensure regulatory compliance and a secure onboarding process. In 2022, lending partner Genesis Global Capital froze withdrawals, which locked up assets for Gemini Earn users. The company worked to recover the funds, ultimately achieving a settlement that fully reimbursed all Earn customers for their crypto assets in kind.

Final Thoughts: Is Gemini Worth It?

The BlockFi Visa crypto card was innovative for its time by offering users an easy way to earn rewards on everyday spending. However, after the exchange was shut down, so was the credit card service.

Alternative cards like the Gemini Credit Card offer similar (arguably better) benefits. These benefits include instant crypto rewards, zero annual fees, and robust security. Sign up now and start earning crypto with every purchase.