Gemini, a cryptocurrency exchange, is completing the acquisition of Blockrize and simultaneously unveiling a new product developed utilizing Blockrize’s technology. The company plans to introduce a credit card later this year that functions as a standard credit card, but offers bitcoin as a reward for purchases.

The card will operate identically to conventional credit cards and will be accessible to users within the United States. Cardholders will be able to accumulate up to 3% of their spending in bitcoin rewards – with the emphasis being on up to 3%. The program will also extend to other cryptocurrency assets, and all earned rewards will be credited directly to the user’s Gemini account.

Gemini is not the first firm to announce a credit card offering bitcoin rewards. BlockFi previously revealed its own card in December. However, neither company has yet made their respective cards available to the public.

For comparison, BlockFi advertises rewards of 1.5% on purchases made with fiat currency. While the card carries an annual fee of $200, customers receive $250 back if they spend a minimum of $3,000 within the initial three months of card usage.

This emerging type of credit card may appeal to individuals interested in gradually building their cryptocurrency holdings without directly interacting with an exchange. Furthermore, some cryptocurrency supporters prefer not to utilize debit cards linked to their crypto wallets, as they wish to retain their crypto assets – a practice commonly referred to as “HODL.”

These credit cards can be viewed as an alternative to traditional cards that provide cash-back benefits. While they may not offer points redeemable for various perks, they provide a convenient way to acquire cryptocurrency assets passively.

Interested Gemini customers can join the waitlist starting today. Blockrize had been developing a credit card prior to its acquisition, and individuals who previously registered on Blockrize’s waitlist will remain on the list as part of the Gemini program.