TL;DR
- Strategic Partnership: Coinbase and Stripe join forces to enhance digital asset adoption. The focus is on integrating the USDC stablecoin into Coinbase’s Layer-2 Platform Base and making it available through Stripe’s fiat-to-crypto on-ramp.
- USDC for Cross-Border Transactions: With nearly 150 fiat equivalents supported, users can convert fiat into digital assets seamlessly. The USDC stablecoin’s peg to the US dollar ensures stability.
- Stripe’s Crypto Initiatives: Stripe, a crypto pioneer, plans to reintroduce stablecoins into its services. It aims to enable merchant payments in USDC by summer, initially processing transactions through Ethereum, Solana, and Polygon.
On Thursday, June 27, crypto exchange Coinbase announced a strategic partnership with payments processor Stripe, aiming to enhance the adoption of digital assets. This collaboration centers around the integration of the USDC stablecoin on Coinbase’s Layer-2 Platform Base and its availability as part of Stripe’s fiat-to-crypto on-ramp.
Coinbase 🤝 Stripe
Coinbase is partnering with @stripe to bring @base's faster, cheaper financial infrastructure to millions of businesses around the world.
Here’s what we’re doing ↓ pic.twitter.com/OwNOFqFbFB
— Coinbase 🛡️ (@coinbase) June 27, 2024
The inclusion of USDC on Coinbase’s Layer-2 Platform Base holds significant promise for cross-border remittances and settlements. With nearly 150 fiat equivalents supported, users can seamlessly convert their fiat into digital assets. The USDC stablecoin, pegged to the US dollar, ensures stability and facilitates efficient transactions.
Streamlined Customer Onboarding
Stripe, a pioneer in payment processing, is no stranger to the crypto space. Co-founder and president John Collison recently announced at the company’s Sessions conference that stablecoins would soon re-enter Stripe’s services. This move aligns with Stripe’s history as one of the first payment processors to offer Bitcoin services back in 2014.
Looking ahead, Stripe plans to introduce merchant payments in USDC by the end of this summer. The company aims to integrate stablecoin payments into its checkout suite, allowing immediate settlement of USDC transactions in fiat currency. Initially, these transactions will be processed through Ethereum, Solana, and Polygon blockchain networks.
Stripe and Avalanche Integration
In addition to the Coinbase partnership, Stripe has expanded its services to include support for the Avalanche C-Chain. This integration provides retail users with a seamless way to acquire AVAX directly, bypassing the complexities of traditional crypto exchanges.
Coinbase isn’t stopping there. The exchange recently took legal action against the SEC and the FDIC. The lawsuit challenges the SEC’s decision to exclude Ether (ETH) from its list of unregistered securities, a list that previously included Ripple’s XRP. Coinbase’s “Stand with Crypto” political action committee (PAC) further demonstrates its commitment to advocating for the crypto industry.
In June, the PAC celebrated a significant milestone, surpassing 1 million signatures from crypto advocates. As Coinbase continues to push boundaries, its partnership with Stripe promises to bring digital assets to millions of users worldwide.
