Our crypto debit cards offer a way for your cardholders to spend the cryptocurrencies they already hold. Merchants do not need to accept crypto payments, and the cardholders can use the cards like they would any other card issued on the Hydrogen platform! For even more security, the cards also have Decentralized Finance (DeFi) components created by the open-source DeFi ecosystem Project Hydro.
How it Works
Our no-code platform orchestrates everything needed to offer a crypto debit card for your cardholders. We explain the steps below:
1. Your cardholders go through the normal card issuance to create a debit card on our platform. The cards can be funded with USD, or kept with a $0 balance.
2. Your cardholders can send any major cryptocurrency or stablecoin, such as Bitcoin, Ethereum, USDC, and Dogecoin, to a cryptocurrency custody wallet you oversee with our partner MSB firm. You can also have cardholders on-ramp to crypto from fiat held in their local bank.
3. Your cardholders can control their crypto spending settings in our no-code card admin component. They can set transactions to be spent in USD (default) or a crypto of their choice. If the cardholder selects a cryptocurrency on their settings, the following steps will apply.
4. The cardholder will set up a Hydro Snowflake, a unique non-fungible token (NFT) identity linked on multiple decentralized blockchains. This will help the network to validate the cardholder and their crypto balance for future transactions, like how Mastercard and Visa validate transactions.
5. The cardholder can swipe their debit card with any merchant at the point of sale, or use a virtual card for an online transaction. The merchant does not need to accept crypto payments and they will not know that the cardholder is paying with crypto. The crypto debit cards are compatible with regularly issued virtual, physical, and tokenized Hydrogen cards.
6. The Snowflake NFT is checked through the Hydrogen API and the balance is confirmed. If there is enough crypto held by the cardholder to make the transaction, it is approved.
7. Hydrogen orchestrates an immediate sale of the crypto at the current market price through a third-party partner MSB, and moves money from our customer's ledger to the card.
8. The USD that is immediately moved onto the card is then sent to the merchant's processor, like any other transaction on the Mastercard or Visa network.
9. The transaction will be approved, and the cardholder will see a debit of the crypto spent in their wallet. Hydrogen's customer will receive a daily bank transfer from the MSB with the sum of all amounts spent by cardholders throughout the day.
10. A small amount of HYDRO is staked by our customer with each transaction by a cardholder. This DeFi staking allows our customers to earn yield (10% or more), and reduces risk to the overall network by validating the cardholder’s Snowflake and the transaction.
11. Our customers can pay the staked HYDRO back to cardholders as monthly rewards, similar to how interchange from Mastercard or Visa is paid out on our platform.
Our crypto debit cards function like any other card issued on the Hydrogen platform! This means your cardholders can take advantage of all the following rewards features:
- Crypto or USD Rewards: pay out interchange earned on any transaction in major cryptos or USD.
- Custom Rewards: pay out customer rewards (e.g. sign up bonuses) to cardholders in major cryptos or USD.
- Merchant Funded Rewards: pay out rewards created by our network of third-party merchants to cardholders in major cryptos or USD.
How Do I Qualify?
Unlike other card issuance platforms, which require you to do a year of API integrations, orchestrations, and application development, Hydrogen’s platform is entirely no-code. You can use the crypto debit card feature with as little as 1 card issued! There are a few additional requirements we will need from you to offer this feature, as explained below:
- Reserve Balance: you will need to maintain a reserve account balance equal to 1-day of average customer transaction volume.
- Compliance Review: your company will be subject to an additional compliance review by our team.
- Financial Review: your company will be subject to an additional financial review by our team.
Disclaimer: holding cryptocurrencies involves the risk of loss, including potentially all the principal held in a wallet. Any cryptocurrency held in a crypto debit card wallet is not FDIC insured. Metabank N.A., the bank sponsor, is not affiliated with, nor does it endorse any third-party offering crypto debit cards or crypto debit card related services, including MSBs and wallet providers. All DeFi services are offered by the Project Hydro Foundation, an open-source blockchain project unaffiliated with The Hydrogen Technology Corporation.