Tech
Coinbase Partners with Stripe to Onboard Fiat-to-Crypto Customers
On June 27, Coinbase and Stripe announced a strategic partnership to simplify fiat-to-crypto conversions for their customers.
This collaboration aims to leverage the strengths of both platforms to provide users with better access to digital assets and faster cross-border settlements. It marks a significant step forward in integrating traditional finance with cryptocurrencies.
Coinbase-Stripe Asset Partnership and Integration
A notable feature of this Association is the integration of USD Coin (USDC) into Stripe’s crypto payment system on the Base network.
This will enable faster and more efficient cross-border transactions, allowing fiat equivalent settlements in 150 countries. By incorporating USDC, Stripe aims to establish faster and more reliable remittances to improve the global reach of its payment services.
For Stripe users, this partnership means smoother conversions from fiat to digital assets. Notably, USDC will be part of Stripe’s fiat-to-crypto journey to simplify the process for customers looking to convert their traditional currencies into cryptocurrencies.
Significantly, this integration will reduce barriers to entry for new entrants cryptocurrency users, making it easier and more convenient to start using digital assets.
Instead, Coinbase will integrate Stripe’s fiat-to-crypto ramp, allowing its users to purchase crypto assets using credit cards and Apple Pay. This move will expand Coinbase users’ payment options, offering greater flexibility and accessibility when purchasing digital assets.
This partnership marks a significant return of cryptocurrencies to the Stripe ecosystem. On April 25, Stripe co-founder and chairman John Collison announced During the company’s Sessions conference, Stripe announced that stablecoins would return to its offerings.
The announcement followed Stripe’s previous exit from the Bitcoin market, where it was one of the first payment processors to offer Bitcoin services in 2014. Collison had cited Bitcoin’s inefficiencies as a payment method as the reason for Stripe’s withdrawal.
In addition to USDC integration, Stripe has also introduced support for Avalanche C-Chain. This move allows verified Stripe customers to do so acquire Avalanche tokens leverage their fiat-to-crypto on-ramp, further expanding the range of digital assets accessible through Stripe.
Regulatory obstacles
Meanwhile, the partnership announcement comes amid a challenging regulatory environment in the United States.
In recent years, innovation in the cryptocurrency industry has faced significant obstacles due to increasing regulation. scrutiny on digital asset providers, centralized exchanges and stablecoins. Stripe, previously involved in Facebook’s Libra project, had to abandon the initiative under pressure from the government.
On June 27, the same day the partnership was announced, Coinbase archived lawsuits against the Federal Deposit Insurance Corporation (FDIC) and the SEC.
The lawsuits allege that these agencies failed in their duty to provide necessary information under the Freedom of Information Act (FOIA).
The SEC’s decision to exclude Ether from the list of unregistered securities is central to the case. This list primarily includes the process behind determining Ether as a non-security.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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