For people in the crypto space, the U card is a 'lifeline'. Previously, withdrawing funds required OTC trading, which often resulted in frozen cards and outrageously high fees. Now, with the U card, you can directly load cryptocurrencies onto the card, making it as simple as using Alipay balance for purchases. Merchants receive Renminbi, and no one can trace your crypto identity. If crypto service providers can offer such a safe and convenient withdrawal channel, existing users will definitely be more willing to stay within their ecosystem, increasing activity and stickiness naturally.
Previously, there was a 'dimensional wall' between crypto users and traditional banks and merchants. Now, with the U card, crypto users can use Bitcoin and Ethereum directly as money, binding their accounts to Alipay and WeChat to place orders on Taobao and Meituan, and even pay at street pancake stalls. It's like crypto has opened a 'cheat code', allowing traditional financial users to think 'so this is how digital currency can be used'. If crypto service providers can seize this opportunity, they might attract a large wave of 'old money' users who have never touched cryptocurrencies, and even collaborate with banks to launch new businesses, such as issuing co-branded cards or developing compliant RWA projects.
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Once there are a massive number of users, the accompanying app for the U card will be a 'treasure trove'. For example, it could feature an asset management function to help users manage their scattered digital currencies centrally, and even automatically convert them into stablecoins to earn some price difference; or introduce its own stablecoin, allowing users to automatically settle purchases with stablecoins, generating additional fees. In the future, it could even offer lending and wealth management services, keeping users on its platform, and making the money-making process a natural progression.
In short, the U card is a tool that addresses the withdrawal pain points for people in the crypto space on a small scale, and on a larger scale, it is a strategic hub connecting the old and new financial worlds. As long as crypto service providers build this 'bridge', they can make money both inside and outside, so why not?