Altcoins News
By Sakamoto Nashi
1 / 15
Crypto cards hurt wallets. Every swipe triggers a taxable event because users basically sell their digital assets to buy stuff, and the IRS wants its cut from those transactions.
2 / 15
Onchain credit works differently and that's why it's gaining steam fast among crypto holders who want to spend without getting hammered by Uncle Sam.
3 / 15
Things get murky with regulations though.
4 / 15
The appeal is clear enough - no liquidation means no taxable events, and your Bitcoin position stays untouched while you access liquidity.
5 / 15
But crypto cards aren't going away quietly. They're still convenient for everyday purchases since most merchants can't handle direct crypto payments yet.
6 / 15
Market dynamics are shifting toward onchain solutions.
7 / 15
Robert Leshner from Compound thinks the ability to earn interest on collateral while accessing credit is a game-changer for DeFi.
8 / 15
Binance announced plans to integrate more DeFi capabilities by mid-2026, recognizing that users want more flexible financial products beyond traditional crypto cards.
9 / 15
Traditional finance is taking notice too. JPMorgan Chase revealed on March 16 that it's exploring partnerships with blockchain companies to offer similar credit solutions.
10 / 15
Regulatory uncertainty still hangs over everything. The UK's Financial Conduct Authority expressed concerns on March 15 about risks in decentralized finance, calling for more…
11 / 15
Singapore's Crypto.com partnered with a local fintech firm on March 14 to develop onchain credit products for Asian markets.
12 / 15
User education remains a big hurdle though. Many crypto enthusiasts still don't fully understand how onchain credit works or how to integrate it into their financial strategies.
13 / 15
The tax advantages alone make onchain credit attractive for serious crypto holders. No asset sales means no immediate tax consequences, which can save thousands for people with…
14 / 15
Market participants are watching SEC guidance closely since it could determine whether onchain credit becomes mainstream or stays niche.
15 / 15
Compound's 35% activity increase since January shows momentum building despite regulatory uncertainty.
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