- Coinbase and Stripe have announced a partnership to integrate USDC on Base with Stripe’s crypto product suite.
- This initiative aims to facilitate faster and cheaper money transfers to over 150 countries by incorporating USDC on Base into crypto payments.
- Coinbase will also integrate Stripe’s fiat-to-crypto onramp into Coinbase Wallet, enabling instant crypto purchases via credit cards and Apple Pay.
Coinbase and Stripe partner to revolutionize global crypto payments with USDC integration.
Coinbase and Stripe Aim for Global USDC Adoption
As previously reported on CoinOtag, Stripe restarted crypto payments this year by supporting USDC on Solana, Ethereum, and Polygon. This move aligns with the growing consumer demand for digital payment options, allowing businesses to accept stablecoins for online transactions. The latest decision to integrate USDC on Base underscores the vital role stablecoins play within the financial ecosystem, offering the advantages of cryptocurrencies while minimizing volatility, making it an attractive choice for both consumers and businesses.
Expanding Market Share for USDC
Issued by Circle Internet Financial, USDC is the seventh-largest cryptocurrency by market capitalization and the second-largest stablecoin. Known for its transparency and regulatory compliance, USDC provides monthly audits of its reserve assets. According to Visa’s adjusted stablecoin metric, USDC has dominated 50% of all transactions since the start of 2024. This shift indicates a significant change from earlier market dynamics previously led by USDT.
The rise of USDC follows a tumultuous period marked by the U.S. banking crisis last year. In December 2023, USDC’s circulation plummeted from $56 billion to $23 billion after a $3.3 billion exposure at Silicon Valley Bank came to light. However, USDC’s market cap has rebounded to $32.8 billion, highlighting its resilience.
Coinbase on the Offensive
Over the past few years, the regulatory environment in the United States has been increasingly challenging for centralized exchanges, digital asset providers, and stablecoins. Once involved in Facebook’s Libra project, Stripe had to exit due to government pressure. On June 27, Coinbase filed lawsuits against both the U.S. Securities and Exchange Commission (SEC) and the Federal Trust and Deposit Corporation (FDIC), alleging that these bodies failed to provide necessary materials under the Freedom of Information Act (FOIA).
The lawsuits focus on the SEC’s decision to exclude Ether, distinguishing it from other cryptocurrencies like Ripple’s XRP, which were classified as unregistered securities. Coinbase also launched the “Stand with Crypto” Political Action Committee (PAC), advocating for the industry’s interests and announcing they had gathered 1 million signatures from crypto supporters by June.
Conclusion
The partnership between Coinbase and Stripe marks a significant step towards mainstreaming crypto payments, particularly through the integration of USDC on Base. This collaboration not only aims to bridge the gap between traditional finance and the burgeoning crypto economy but also signifies the increasing importance of stablecoins in the financial ecosystem. With regulatory landscapes evolving and market dynamics shifting, such partnerships could pave the way for broader adoption and innovation in the crypto space.
