Coinbase and American Express Launch a Bitcoin Rewards Card — Revolutionary or Risky?

In a bold move that blends crypto with traditional finance, Coinbase has teamed up with American Express to introduce a new kind of credit card: the Coinbase One Card. Announced at the 2025 State of Crypto Summit in New York, this sleek metal card offers up to 4% cashback in Bitcoin on every purchase. It’s the first credit card to combine crypto rewards with the premium perks of American Express, potentially changing the way people think about everyday spending.

But amid all the buzz, there are real questions: How does this card compare to traditional cashback options? What does Amex’s involvement say about the broader financial landscape? And is this card actually worth it?

Let’s take a closer look.

A New Way to Earn Bitcoin While You Spend

Launching in fall 2025, the Coinbase One Card will be available only to U.S. subscribers of Coinbase One, the platform’s premium service that costs $49.99 per year. Instead of earning cash, points, or travel miles, users earn Bitcoin with every purchase. The cashback rate ranges from 2% to 4%, depending on how much crypto you hold in your Coinbase account.

The more digital assets you keep on the platform—whether Bitcoin, Ethereum, or others—the higher your rewards tier. It’s a smart way for Coinbase to encourage users to stay engaged with their platform, turning passive crypto holdings into a kind of loyalty system.

The card is issued by First Electronic Bank and powered by fintech company Cardless. It’s fully integrated into the Coinbase app, so users can track their spending, manage rewards, and even convert Bitcoin to U.S. dollars for payments—all from their phone. The experience is modern, digital-first, and clearly inspired by products like the Apple Card, but with a crypto angle.

Since it runs on the American Express network, the card includes premium perks like purchase protection, extended warranties, trip cancellation coverage, and access to exclusive events and presales. There’s no annual fee and no foreign transaction fees, making it an attractive option for travelers and digital finance enthusiasts alike.

How It Stacks Up Against Other Cards

Coinbase has experimented with cards before, including a Visa debit card in 2019 that let users spend crypto directly. But that product lacked the appeal and flexibility of a credit card. The new Coinbase One Card is a full-featured credit product, capable of competing with both crypto-native offerings and mainstream cards.

Rivals include the Gemini Credit Card, which offers up to 3% back in crypto through Mastercard, as well as more traditional options like the Chase Sapphire Preferred or the American Express Platinum. By offering up to 4% in Bitcoin and tying in with Amex’s global network, Coinbase is clearly aiming high.

American Express Steps Into the Crypto Arena

For American Express, this partnership represents a significant step into consumer-facing crypto products. While the company has previously explored blockchain and had a brief collaboration with Abra in 2022, this marks its first real foray into a credit card that offers crypto rewards.

This signals a broader shift. As Bitcoin surpasses $100,000 in 2025 and U.S. regulators soften their stance, traditional financial institutions are becoming more comfortable with digital assets. American Express partnering with Coinbase could set the stage for other banks and card issuers to follow suit.

If the Coinbase One Card gains traction, it could pave the way for more crypto-reward products across the industry, especially as younger, tech-savvy consumers look for alternatives to traditional reward systems.

The Risks You Should Know

As exciting as the card sounds, it comes with notable risks.

First, it’s only available to Coinbase One subscribers, which means committing to a nearly $50 annual fee. While the subscription includes perks like zero trading fees and priority customer support, that’s an upfront cost that doesn’t exist with many other rewards cards.

Second, earning the highest rewards rate of 4% requires holding a substantial amount of crypto on the platform. For some, that could mean locking up thousands of dollars in a volatile asset. If you prefer liquidity or are risk-averse, that might not sit well.

Bitcoin’s price swings add another layer of complexity. While earning BTC as cashback might sound appealing when prices are climbing, a market dip could quickly reduce the value of your rewards. Unlike traditional cashback, which is stable in dollar terms, Bitcoin rewards are subject to constant price fluctuations.

Taxes also present a challenge. In the U.S., cryptocurrency is treated as property by the IRS, which means that every Bitcoin reward is a taxable event. You’ll need to record the value when received and again when you use, sell, or convert it. That’s a lot of tracking for small, frequent purchases.

Then there’s the credit risk. Like any credit card, this product carries the potential for debt if you don’t pay off your balance in full. Interest rates can be high, and if you're overspending to chase rewards, you could end up negating any financial benefits. Some critics have even questioned the logic of using credit to earn a currency that was originally designed to promote financial freedom.

Finally, security is always a concern in the crypto space. While Coinbase has solid protections in place, no platform is immune to breaches. And because the rewards go directly into a custodial Coinbase wallet, users don’t have full control in the same way they would with a personal crypto wallet.

Should You Get It?

If you’re already a Coinbase One subscriber, comfortable with crypto volatility, and disciplined about paying off your balance each month, the Coinbase One Card could be a valuable addition to your wallet. The combination of high rewards, American Express benefits, and crypto exposure is hard to beat.

But if you’re new to crypto, wary of the tax and volatility headaches, or don’t want to deal with a subscription fee, you might be better off with a simpler, more traditional rewards card. Options like the Citi Double Cash or the Amex Blue Cash Preferred still offer strong returns without the added risk or complexity.

There are still a few unanswered questions too. Coinbase hasn’t released full details about credit score requirements or the balance thresholds for each rewards tier. Until that information is available, it might be wise to hold off before applying.

The Bigger Picture

At the end of the day, the Coinbase One Card represents more than just another credit card. It’s a symbol of how far crypto has come—and how close it is to becoming part of everyday life. By partnering with a financial institution as established as American Express, Coinbase is helping bring Bitcoin into the financial mainstream.

If the card is successful, we could see a wave of new crypto-integrated financial products, from crypto-backed mortgages to yield-earning savings accounts. And while the Coinbase One Card won’t be the right fit for everyone, it’s certainly a sign of the times.