Stripe, a leading global payments company, has revealed a strategic collaboration with the cryptocurrency exchange Coinbase to incorporate support for USD Coin (USDC) on Base, its Layer 2 network. This partnership signifies Stripe’s notable reentry into the cryptocurrency space and seeks to streamline and broaden global crypto payments.
Key Features of the Partnership
The collaboration between Stripe and Coinbase will introduce several critical features designed to enhance the functionality and reach of crypto payments:
- Fiat-to-Crypto Conversion: Stripe users in the U.S. will now be able to convert U.S. dollars into USDC directly on the platform.
- Global Crypto Payouts: Stripe will enable its users to send USDC to over 150 countries worldwide, using its new “crypto payouts” feature.
- Coinbase Integration: Coinbase Wallet will integrate Stripe’s fiat-to-crypto onramp, allowing users to purchase cryptocurrencies via credit cards and Apple Pay.
These integrations aim to forge a robust framework for better payment infrastructure globally, enhancing user experience and accessibility.
The Resurgence of Stripe in Cryptocurrency
After initially stepping back from cryptocurrency operations in 2018 due to market volatility and high transaction fees, Stripe has progressively reopened its doors to digital assets. Starting with Twitter in 2022, Stripe reintroduced support for stablecoin payments and USDC payouts on networks like Solana and Ethereum.
The announcement of this partnership has coincided with a significant increase in activity on the Base network. Recent data shows that on June 27, Base reached a new peak of 42 transactions per second. Furthermore, Base has experienced a notable rise in total value locked, establishing itself as a leading Layer 2 network. This growth is further evidenced by the widespread creation of new tokens, especially memecoins, showcasing the network’s expanding influence and utility in the decentralized finance (DeFi) sector.