Coinbase and Stripe Announce Partnership to Boost Global USDC Adoption
Coinbase and Stripe have announced a strategic partnership to integrate USDC on Base across Stripe’s crypto product suite. This collaboration will enable faster and cheaper money transfers to over 150 countries by incorporating USDC on Base into Stripe’s crypto payouts.
As part of the partnership, Coinbase will also integrate Stripe’s fiat-to-crypto onramp into Coinbase Wallet, allowing users to instantly purchase crypto with credit cards and Apple Pay.
Global Adoption of USDC in Focus
Earlier this year, Stripe reintroduced crypto payments, supporting USDC on Solana, Ethereum, and Polygon. This initiative allows users to accept stablecoins for online transactions, catering to the growing demand for digital payment options. The integration of USDC on Base underscores the critical role stablecoins play in the financial ecosystem, offering the benefits of cryptocurrencies while minimizing volatility.
Coinbase’s partnership with Stripe aims to bridge the gap between traditional finance and the emerging crypto economy. Coinbase CEO Brian Armstrong emphasized the impact of this collaboration: “We’re partnering with Stripe, who processed the equivalent of 1% of 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.”
USDC’s Market Influence
USDC, issued by Circle Internet Financial, is the seventh-largest cryptocurrency and the second-largest stablecoin after Tether’s USDT. Known for its transparency and adherence to regulatory standards, USDC offers monthly audits of its reserve assets. According to Visa’s adjusted stablecoin metric, USDC has dominated 50% of total transactions since the beginning of 2024, reflecting a significant shift from previous market dynamics where USDT was the leader.
Despite a challenging period during the US banking crisis in December 2023, which saw its circulation drop from $56 billion to $23 billion, USDC’s market capitalization has rebounded to $32.8 billion in circulation.
Advancing Crypto Regulation and Adoption
Coinbase continues to actively promote cryptocurrency use worldwide and advocate 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 stated.
This partnership highlights the potential for more collaborations like this one, along with a stronger push towards a clearer regulatory environment in the crypto industry.
Featured image from: beincrypto.com