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Kraken Unleashes Krak Card for Crypto Cashback
29 Aug
Summary
- Kraken's new Krak Card offers 0-2% cashback on purchases.
- Cashback can be received in U.S. dollars or Bitcoin.
- Similar crypto cashback cards are offered by Gemini and Venmo.
Crypto exchange operator Kraken announced the Krak Card last week, a debit instrument providing cashback rewards. Users can opt to receive their cashback either in U.S. dollars or Bitcoin, with rates varying from 0% to 2% based on their total holdings within the Kraken network. This feature positions Kraken within an emerging segment of the payment card market.
The timing of the Krak Card's announcement coincided with a favorable shift in financial markets. Following Treasury Secretary Scott Bessent's statement on increased government debt repurchases, bond yields decreased, bolstering demand for riskier assets like cryptocurrencies. This led to a surge in digital asset prices, including Bitcoin.
While the Krak Card is a new entrant, it faces competition from similar offerings. Gemini offers a credit card with cashback in over 50 cryptocurrencies, and Venmo provides a credit card allowing cashback to be used for purchasing supported cryptocurrencies. Both competing cards feature no annual fees.
