Coinbase and Stripe partner for USDC integration

Coinbase and Stripe have announced a partnership to integrate USDC on Base, Stripe's crypto product suite. Stripe includes USDC on Base in crypto payments, enabling fast and cheap money transfers with over 150.

Additionally, Coinbase will integrate Stripe's fiat-to-crypto onramp into Coinbase Wallet, allowing users to instantly buy crypto with credit cards and Apple Pay.

Coinbase and Stripe aim for global USDC adoption

Stripe reintroduced crypto payments this year, supporting USDC with Solana, Ethereum and Polygon. This move will allow users to receive stablecoins for online transactions, accommodating the growing demand for digital payment options.

The recent decision to merge USDC on Base shows the importance of a stable coin in the financial ecosystem. Stablecoins offer the benefits of cryptocurrencies by reducing volatility and making them an attractive option for consumers and businesses. Coinbase, in partnership with Stripe, aims to bridge the gap between traditional finance and the emerging crypto economy.

“We're partnering with Stripe, which generated 1% of global GDP last year, to bring fast and cheap crypto rails to millions of businesses around the world – including Base and USDC,” shared Coinbase CEO Brian Armstrong. .

Read more: Coinbase Review 2024: Best Crypto Exchange for Beginners?

Issued by Circle Internet Finance, USDC is the seventh largest cryptocurrency and the second largest stablecoin after Tether USDT. USDC is accredited by conducting monthly audits of assets held in compliance with transparency and regulatory standards.

According to the Visa-adjusted stablecoin benchmark, starting in early 2024, USDC dominates with 50% of total transactions. This trend represents a significant change from previous market dynamics where USDT was the leader.

The rise in USDC follows a challenging period related to the US banking crisis last year. In December 2023, the spread fell from $56 billion to $23 billion after showing a $3.3 billion exposure to Silicon Valley Bank. But the US dollar capitalization has grown to $32.8 billion in circulation.

Read more: Guide to the Best Stablecoins in 2024

Coinbase actively promotes the use of cryptocurrencies worldwide and supports industry regulation. Leveraging their combined strengths, Coinbase and Stripe aim to make USDC a widely accepted currency for international transactions.

“Crypto is the future of money because it is not limited by international borders or banking hours, and it reduces both friction and user fees. These three key combinations lay a solid foundation for Stripe and Coinbase to begin building better payments for users around the world in the future,” Coinbase added in a statement. .

Coinbase and Stripe's collaboration, along with efforts to bring about a more transparent regulatory environment, raises the possibility that such partnerships will become more common.