Coinbase and Stripe Join Forces to Streamline Fiat-to-Crypto Transactions and Advocate Industry Change
Summary:
Coinbase and Stripe have partnered to streamline fiat-to-crypto transactions. The collaboration integrates Coinbase’s fiat-to-cryptocurrency interface into Stripe’s crypto payouts, allowing quick international transfers and easing customer onboarding. At the beginning of the year, Stripe's co-founder promised the reintroduction of stablecoins to its platform. Now, amidst increasing regulations, Coinbase has also launched the "Stand with Crypto" political action committee to advocate for industry and market participants.
In a twofold partnership, digital currency exchange Coinbase and payment technology company Stripe, have set in motion a collaborative initiative aimed at streamlining fiat-to-cryptocurrency transactions for users of both platforms. Unveiled on June 27, the collaboration extends support to USD Coin (USDC) via Base on the Stripe platform as a part of the crypto payouts, thereby allowing quicker international money transfers and settlements in fiat equivalent in over 150 countries. USDC will be incorporated into Stripe’s fiat-to-cryptocurrency gateway, thus simplifying the onboarding process for customers intending to exchange fiat for digital assets. Similarly, Coinbase will integrate Stripe’s fiat-to-cryptocurrency interface, allowing payment processor users to purchase cryptocurrency using credit cards and Apple Pay.
Merging back to plans announced at the start of the year, Stripe's co-founder and president John Collison has fulfilled his commitment made at the company's Sessions conference of reintroducing stablecoins to Stripe. Stripe initially pioneered Bitcoin (BTC) services among payment processors in 2014 but later withdrew support for the cryptocurrency because, as Collision expressed, it was a “poor payment method” then. At the time of day the comeback of Stripe to the crypto sphere was announced, the Avalanche C-Chain received support for confirmed Stripe customers. This new integration enabled Stripe’s customer base to buy AVAX (AVAX) tokens via the fiat-to-crypto platform.
Against a regulatory background marked by constraints for cryptocurrency innovation in recent years in the US, Coinbase has adopted a proactive stance. Tracking centralized exchanges, digital asset providers, and stable coins closely have been regulators. Stripe, previously a participant in Facebook's Libra project, was compelled to evacuate the initiative due to political pressures. On June 27, Coinbase legally confronted the Securities and Exchange Commission (SEC) and the Federal Trust and Deposit Corporation (FDIC), arguing that these government agencies had failed to supply necessary documents per the Freedom of Information Act (FOIA).
The central issue of the lawsuit was the SEC’s judgement to exempt Ether (ETH) from the category of unregistered securities—such as the Ripple’s XRP (XPR)—and to probe the decision-making protocol that the regulator harnessed for this discernment. Moreover, Coinbase introduced a political action committee (PAC) in the US, “Stand with Crypto”, to amplify industry voices and market players' concerns. In June, the PAC publicised that it had mobilised 1 million endorsements from crypto proponents.
Published At
6/28/2024 1:15:30 AM
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