BenPay Card Merges On-Chain Yield with Instant Global Spending

DENVER, CO – January 05, 2026 – Benfen Inc. today announced the launch of its BenPay On-Chain Yield Card, a new financial product aiming to resolve one of the most persistent dilemmas for digital asset holders: the trade-off between earning yield, maintaining security, and having immediate access to funds for spending. The card allows users to earn decentralized finance (DeFi) yield on their assets while retaining self-custody and the ability to spend their funds instantly, a combination that has largely eluded the market.

For years, crypto users have navigated a landscape of compromises. Keeping assets on a centralized exchange offers convenience but introduces custodial risks and typically generates no return. Storing them in a private, self-custody wallet ensures security but leaves the funds idle and unproductive. Alternatively, deploying assets into DeFi protocols can generate significant yield but often involves a steep learning curve, unpredictable risks, and locked liquidity, making funds unavailable for everyday purchases. BenPay's new offering claims to eliminate these trade-offs by integrating these functions into a single, streamlined experience.

Tackling Crypto's Long-Standing Trilemma

The core challenge BenPay addresses is what it calls the trilemma of security, yield, and liquidity. The complexity of DeFi protocols—requiring knowledge of private key management, network fees, and smart contract risk—creates a significant barrier to entry, or "high threshold fear," for mainstream users. A single mistake can result in the permanent loss of funds, discouraging participation.

Even for seasoned DeFi users, the problem of "liquidity fragmentation" remains. Assets earning yield are typically locked in smart contracts, making them illiquid. To use these funds for a simple purchase, a user must initiate a multi-step, often costly, process: withdraw from the protocol, wait for blockchain confirmations, transfer to an exchange, sell for fiat currency, and finally transfer to a bank account. This cumbersome workflow negates the promise of crypto as a seamless medium of exchange.

The BenPay card is designed to dismantle these barriers by creating a system where assets can be both productive and liquid. The goal is to transform digital assets from static holdings into dynamic funds that work for the user in the background, even while being available for immediate use.

A New Architecture for Earning and Spending

At the heart of the BenPay card is a unique three-layer account architecture designed to coordinate funds intelligently. Users maintain a primary self-custodial wallet on the BenFen Chain, ensuring they have full control over their private keys and ultimate ownership of their assets. From there, funds can be moved to a card account balance, where the "DeFi Earn" system can be activated with a single tap.

Once enabled, this system automatically connects the user's balance to a curated selection of established, "blue-chip" DeFi protocols like Aave and Compound. The yield, which starts at a reported 3% APY based on real-time on-chain returns, is generated directly from these protocols. BenPay clarifies that the card itself does not generate yield; it acts as a user-friendly gateway to the yield-generating capabilities of the broader DeFi ecosystem. Yield is settled daily and credited to the user's account, where it can be automatically reinvested to compound returns.

When a user needs to make a purchase, funds are seamlessly moved from the yield-generating account to the instantly spendable card balance. The system is engineered to handle the underlying redemption from DeFi protocols instantly and without requiring the user to pay gas fees for the transaction, a common point of friction in crypto. This allows for a fluid transition between earning and spending, effectively allowing funds to remain productive until the exact moment they are needed.

A Self-Custody Challenger in a Crowded Market

The crypto card market is not new, with established players like Crypto.com and Nexo offering solutions for years. However, many existing cards are custodial, meaning the company holds the user's assets, and often tie rewards to holding a specific native token. BenPay differentiates itself by championing self-custody, a core tenet of the Web3 ethos.

By ensuring users retain control of their private keys, the platform significantly reduces counterparty risk. This approach directly contrasts with the custodial model and may appeal to users who prioritize asset sovereignty. Furthermore, its integrated yield mechanism automates a process that would otherwise be highly complex, setting it apart from cards that primarily function as simple crypto-to-fiat converters at the point of sale.

Navigating the regulatory environment remains a key challenge for any company in this space. Benfen Inc., a U.S.-registered entity, holds a Money Services Business (MSB) license from FinCEN, signaling an effort to comply with financial regulations. While this provides a degree of legitimacy, the global regulatory landscape for DeFi and yield-bearing crypto products is still evolving, and companies like BenPay will need to remain agile to ensure continued compliance across jurisdictions.

Balancing Security, Simplicity, and On-Chain Trust

For any product handling user funds, security is paramount. BenPay's security model is built on several pillars. Beyond self-custody, the platform's smart contracts have been audited by SlowMist, a reputable blockchain security firm, to identify and mitigate potential vulnerabilities. The strategy of integrating only with well-established, market-vetted DeFi protocols is a deliberate choice to balance yield potential with risk management, avoiding the higher risks associated with newer, unproven projects.

The user experience is centered on radical simplicity. The platform abstracts away nearly all of the underlying technical complexity. Users are not required to compare protocol yields, calculate gas costs, or manually manage their positions. Onboarding is also simplified through zkLogin, which allows users to create a self-custodial wallet using familiar social or email accounts without sacrificing control. All operations, from deposits to yield generation, are recorded on-chain, providing a transparent and verifiable ledger of all activity.

By moving complexity to the background, BenPay aims to make participating in the DeFi economy as simple as using a traditional fintech app. This shift in product philosophy—from building tools for experts to creating intuitive experiences for a broader audience—could represent a significant step toward the mainstream adoption of decentralized finance. The product's success will ultimately depend on its ability to consistently deliver on its promises of security, reliable yield, and seamless convenience, effectively demonstrating that users no longer have to choose between putting their assets to work and keeping them ready to spend.