Stripe and Coinbase Partner to Expand Global Adoption of Cryptocurrency and Provide Faster, Cheaper Financial Infrastructure
Stripe and Coinbase have joined forces to enhance the global adoption of cryptocurrency and provide more efficient financial infrastructure. This collaboration, as announced in a blog post by Coinbase, aims to benefit businesses and individuals worldwide.
One of the key aspects of this partnership is the addition of USDC on Base to Stripe’s crypto payouts product. This integration will enable Stripe platforms to facilitate faster and cheaper money transfers to over 150 countries. Additionally, Stripe will incorporate USDC on Base into its fiat-to-crypto onramp, allowing U.S. customers to conduct quicker fiat-to-crypto conversions.
In a reciprocal move, Coinbase will integrate Stripe’s fiat-to-crypto onramp into Coinbase Wallet. This integration will enable instant purchases of crypto using credit cards and Apple Pay. Both companies believe that this collaboration will provide users with access to faster and more cost-effective money transfers.
Stripe had previously discontinued crypto payments in 2018 but announced in April that they would be reintroducing them this summer. Co-founder John Collison cited technical improvements in the crypto space, increased transaction speeds, lower fees, and the growing stability of stablecoins as reasons for the decision.
The resurgence of crypto payments aligns with the growing interest in cryptocurrency as a mainstream payment method among businesses and merchants. Coinbase, on the other hand, is diversifying its revenue sources as digital asset trading matures. With a decline in price volatility, Coinbase has seen a decrease in consumer trading volume and is exploring alternative revenue streams.
During the first quarter, Coinbase generated a significant portion of its sales from sources other than trading fees, including revenue from USDC stablecoin and its Base blockchain. This partnership between Stripe and Coinbase signifies a significant step towards expanding the use of cryptocurrency and improving financial infrastructure on a global scale.