Coinbase and Stripe have teamed up to introduce seamless fiat-to-crypto on-ramps and off-ramps for users of both platforms, according to a June 27 announcement. This partnership aims to enhance the user experience by integrating USD Coin (USDC) support on Stripe through Coinbase’s layer-2 network, Base, along with several other features.
Key Integrations
The partnership will bring USDC support to Stripe on Coinbase’s Base network. This integration is part of Stripe’s crypto payouts, which aims to facilitate faster cross-border remittances and settlements of fiat equivalents across 150 countries.
Fiat-to-Crypto On-Ramps
USDC will be available as part of Stripe’s fiat-to-crypto on-ramp, making it easier for customers to convert fiat currency into digital assets. Conversely, Coinbase will integrate Stripe’s fiat-to-crypto on-ramp, allowing Stripe users to purchase cryptocurrencies using credit cards and Apple Pay.
Stripe’s Return to Crypto
Earlier this year, Stripe co-founder and president John Collison promised the return of stablecoins at the company’s Sessions conference. Stripe initially offered Bitcoin services in 2014 but later discontinued them due to Bitcoin being a “pretty terrible payment method” at the time. Collison’s recent promise marks a significant shift, with Stripe also introducing support for the Avalanche C-Chain for verified customers, enabling AVAX token purchases via fiat-to-crypto onramps.
Coinbase’s Regulatory Challenges
The partnership comes amid a challenging regulatory environment in the United States, which has hampered crypto innovation. On June 27, Coinbase filed lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), claiming the agencies failed to provide necessary materials under the Freedom of Information Act (FOIA). The lawsuit centers on the SEC’s decision to exclude Ether from the list of cryptocurrencies deemed unregistered securities and the deliberation process behind this decision.
In addition to legal actions, Coinbase has launched the “Stand with Crypto” political action committee (PAC) in the U.S., advocating for the industry and its participants. In June, the PAC announced it had collected 1 million signatures from crypto advocates, demonstrating significant support for the sector.
