• CoinDesk reports KAST moved from near break-even to loss-making after its rewards push; no dollar loss figure was disclosed.
• KAST's Reserve pays 8% to 12% by membership tier, while the assets behind it generate 3.5% to 4%, per CoinDesk.
• Interchange cannot cover these rates: the EU caps covered consumer debit interchange at 0.2%, and Federal Reserve data put exempt US debit at an average 1.21% in 2024.
• Bybit EU replaced 2%-10% capped tiers with an uncapped 1% from Aug. 4, and Bleap cut its default cashback from 2% to 1%, both per CoinDesk.
• The business case rests on trading, lending and staking revenue from cardholders, which none of the named firms has published evidence for.

Crypto card providers are paying customers more than their products earn, and the first strain is showing. CoinDesk reported on Nov. 1, 2026 that KAST has moved from near break-even into losses, while Bybit EU and Bleap have cut rewards. The question for a plumbing-minded reader is which revenue line is supposed to close the gap, and the answer so far is a bet rather than a disclosed result.

KAST's rewards exceed what its assets earn

KAST's Reserve pays 8% to 12% depending on membership tier, while CoinDesk reports the assets behind it generate just 3.5% to 4%. CEO Raagulan Pathy told CoinDesk the company was nearly break-even before and is now loss-making. KAST did not disclose its subsidy spend or an updated Reserve balance. CoinDesk reports it raised $80 million in March and has four to five years of runway, per Pathy.

Interchange alone cannot fund these rates

Interchange cannot fund rewards at this scale. CoinDesk cites the EU's 0.2% cap on covered consumer debit and Federal Reserve data showing exempt US debit transactions averaged 1.21% of purchase value in 2024, with credit cards able to exceed 2%. Even the top of that range sits far below an 8% to 12% payout, so the difference has to come from yield, other revenue or investor capital.

Bybit EU and Bleap are trimming rewards

Providers are already repricing. Bybit EU replaced non-VIP tiers of 2% to 10%, subject to monthly caps, with an uncapped 1% for existing cardholders from Aug. 4, following a June announcement, CoinDesk reports. Bleap's default cashback fell from 2% to 1%, with caps of 500 euros per transaction and 3,000 euros a month, though its campaign page still advertises higher rates on selected categories and holdings.

The model depends on revenue beyond the card

Providers are betting that trading, lending and staking revenue can turn card users into profitable customers, CoinDesk reports. Kraken's Krak app averaged about 8.3 card payments a week per user, and an Alea Research report found about 80% of Ether.fi Cash users also used its Liquid product. Bleap and Bybit did not respond to CoinDesk on user numbers or retention, so the thesis remains unproven. Watch for further rate cuts, tier changes and any published unit economics.