Coinbase and Stripe have announced a partnership to integrate USDC on Base across Stripe’s crypto product suite. Stripe will incorporate USDC on Base into its crypto payouts, enabling faster, cheaper money transfers to over 150 countries.
Additionally, Coinbase will integrate Stripe’s fiat-to-crypto onramp into Coinbase Wallet, allowing users to buy crypto instantly with credit cards and Apple Pay.
Coinbase and Stripe Aim for Global USDC Adoption
Stripe reintroduced crypto payments this year, supporting USDC on Solana, Ethereum, and Polygon. This move allows users to accept stablecoins for online transactions, catering to the increasing demand for digital payment options.
The recent decision to integrate USDC on Base highlights the importance of stablecoins in the financial ecosystem. Stablecoins offer the benefits of cryptocurrencies while minimizing volatility, making them an attractive option for consumers and businesses. Coinbase aims to bridge the gap between traditional finance and the emerging crypto economy by partnering with Stripe.
“We’re partnering with Stripe, who processed the equivalent of 1% global GDP last year, to bring the benefits of faster, cheaper crypto rails to millions of businesses around the world — including with Base and USDC,” Coinbase CEO Brian Armstrong shared.
Read more: Coinbase Review 2024: The Best Crypto Exchange for Beginners?
USDC, issued by Circle Internet Financial, is the seventh-largest cryptocurrency and second-largest stablecoin after Tether’s USDT. USDC is recognized for its transparency and adherence to regulatory standards, offering monthly audits of its reserve assets.
According to Visa’s adjusted stablecoin metric, since the beginning of 2024, USDC has dominated with 50% of total transactions. This trend marks a significant shift from the previous market dynamics, where USDT was the leader.
The rise of USDC follows a challenging period tied to last year’s US banking crisis. In December 2023, its circulation dropped from $56 billion to $23 billion after revealing a $3.3 billion exposure to Silicon Valley Bank. However, USDC market capitalization has rebounded to $32.8 billion in circulation.
Read more: A Guide to the Best Stablecoins in 2024
Coinbase actively promotes the use of cryptocurrencies worldwide and advocates for industry regulation. By leveraging their combined strengths, Coinbase and Stripe aim to make USDC a widely accepted currency for global transactions.
“Crypto is the future of money because it is unrestricted by international borders or banking hours, and reduces both friction and fees for users. These three key integrations lay a strong foundation for Stripe and Coinbase to begin building a better payments future for users around the world,” Coinbase added in a statement.
The Coinbase and Stripe collaboration also raises the possibility of partnerships like this one becoming more common, along with a stronger push toward a clearer regulatory environment.
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