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Voyager Digital has launched USDC-linked debit card in an attempt to appeal to a broader customer base with annual rewards.
Voyager Digital, a crypto trading app, is launching a debit card linked to the USD Coin (USDC), according to reports. Furthermore, Voyager Digital says that this USDC-linked debit card will pay as high as 9% in annual rewards to its customers.
However, eligibility to qualify as a beneficiary for this perk requires that customers maintain USDC holdings of at least $100. In addition, Voyager Digital will disburse the bonus payments on a monthly basis, but the USDC holders will get the percentage back in a lump sum on a yearly basis. The USDC payment will be deposited into users’ Voyager accounts based on average monthly balances. According to Voyager Digital, it has about 2.7 million registered users and also recently surpassed 1 million in funded accounts.
Voyager Digital also disclosed that members of Voyager Loyalty program can earn even more perks. This can be as high as 10.5% on USDC and depends on the membership level in question.
On the USDC-enabled debit card, Voyager tapped Metropolitan Commercial Bank, a New York-based, full-service commercial bank to be its issuing partner. In addition, payments data systems platform Usio will be the card’s program manager and processor.
Voyager Digital CEO Sheds More Light on the USDC Card Development
Steve Ehrlich, chief executive officer and founder of Voyager Digital weighed in on the development. In an interview with CoinDesk, Ehrlich stated that linking the card with USD Coin, as opposed to BTC or ETH, is a more appealing prospect. He said this in reference to the company’s target consumer base, adding that it also provided a more transactional approach. Ehrlich also suggested that many consumers are looking to hold crypto, as opposed to trading or transacting it. This is because they view digital currencies as a long-term prospect with the potential to generate even more value for those who are patient with them. As Ehrlich put it, “crypto for all is how we like to portray ourselves.”
Furthermore, Ehrlich also stated that Voyager Digital will launch a similar product in Europe sooner or later. For now, the company remains committed to focusing on successfully implementing the USDC card domestically, given its US customer base. Earlier this year in August, Voyager acquired Coinify, a crypto payment company, for $84 million.
USDC is a stablecoin pegged to the price of the US dollar, and is trackable and traceable on the blockchain. Essentially, the goal of USDC is to speed up transactions while making them cheaper than traditional payment methods.
MoneyGram recently announced a partnership for instant USDC money transfers on the Stellar blockchain. According to the announcement, by 2022, there will be a refurbishment of the ledger-based stablecoin bridge between fiat and crypto, by 2022. According to MoneyGram’s chairman and CEO, the partnership will be different from that of Ripple which uses ODL.