Kraken Launches Debit Card Offering Cashback in U.S. Dollars or Bitcoin
Crypto exchange Kraken has launched the Krak Card, a debit card offering cashback rewards of up to 2% on purchases, which users can receive either in traditional U.S. dollars or cryptocurrency like Bitcoin (BTC). The timing aligns with increased interest in digital assets following Treasury Secretary Scott Bessent's announcement about expanded government debt repurchases, which lowered bond yields and boosted demand for riskier investments such as cryptocurrencies. The Krak Card is part of a growing niche market where crypto cashback cards are becoming more common. Competitors like Gemini offer similar products with varying reward structures in multiple digital currencies or stablecoins. These cards aim to attract users who want to grow their cryptocurrency holdings through everyday spending, while also enhancing customer loyalty for the issuing platforms. Although these rewards may not significantly impact company fundamentals, they could help increase user engagement and retention on crypto exchanges like Kraken.
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