Tech
Coinbase Partners with Stripe to Onboard Fiat-to-Crypto Customers
On June 27, Coinbase and Stripe unveiled 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 improved access to digital assets and faster cross-border settlements. It marks a significant step forward in integrating traditional finance with cryptocurrencies.
Coinbase-Stripe partnership and asset integration
A notable feature of this Association is the integration of USD Coin (USDC) into Stripe’s cryptocurrency payment system on the Base network.
This will enable faster and more efficient cross-border transactions, enabling payments in fiat equivalents in 150 countries. By incorporating USDC, Stripe aims to establish faster and more reliable remittances to enhance the global reach of its payment services.
For Stripe users, this partnership means smoother conversions from fiat to digital assets. Specifically, USDC will be part of Stripe’s fiat-to-crypto journey to simplify the process for customers looking to convert their fiat currencies into cryptocurrencies.
Significantly, this integration will reduce barriers to entry for new entrants. cryptocurrency users, making it easier and more convenient to get started with digital resources.
Instead, Coinbase will integrate Stripe’s fiat-to-crypto on-ramp, allowing its users to purchase crypto assets via 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 president John Collison announced at the company’s Sessions conference that stablecoins were returning to Stripe’s offerings.
This announcement followed Stripe’s previous exit from the Bitcoin market, where it had been 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 acquire Avalanche tokens leverage their fiat-to-crypto on-ramp, further expanding the range of digital assets accessible via Stripe.
Regulatory obstacles
Meanwhile, the partnership announcement comes amid a challenging regulatory environment in the United States.
In recent years, cryptocurrency innovation has faced significant obstacles due to increased regulations. scrutiny on digital asset providers, centralized exchanges, and stablecoins. Stripe, previously involved in Facebook’s Libra project, had to abandon the initiative under government pressure.
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 lawsuit. This list mainly includes the process behind determining Ether as a non-security.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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