Stripe Brings Back Crypto Payments with Stablecoin Support

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Payment service provider Stripe is reintroducing cryptocurrency payments, this time in the form of stablecoins, as announced by co-founder and president John Collison. The new service is expected to be available this summer.

At the company’s developers conference in San Francisco on April 25, Collison stated, “Crypto is finally making sense as a means of exchange.” Since discontinuing its Bitcoin payment option in 2018, the firm has witnessed improvements in transaction times, decreased fees, and the stable performance of stablecoins.

“We’re bringing back crypto as a way to accept payments, but this time with a much better experience with stablecoins,” Collison said.

Stripe to Support Global Stablecoin Payments

Collison emphasized the stability and functionality of stablecoins, particularly USD Coin (USDC). Stripe will offer payment services using USDC on the Solana, Ethereum, and Polygon blockchains.

In his demonstration on stage, Collison showcased a transaction using USDC. He pointed out that the stablecoin’s dollar peg makes it a reliable store of value, contrasting it with currencies like the Turkish lira. Stripe aims to provide a much-improved experience for crypto payments this time around.

Stripe and Bitcoin

Stripe’s history with cryptocurrency dates back to 2014, when it became the first major payment provider to adopt Bitcoin. However, due to Bitcoin’s limitations as a payment method, Stripe discontinued its support after four years.

In 2022, the firm announced significant layoffs, reducing its workforce by 14%. The company blamed the macroeconomic conditions and a drop in startup funding.

Despite this, Stripe remained involved in the crypto space, participating in Facebook’s Libra project (now Diem) before withdrawing due to regulatory pressure. The company began rebuilding its crypto engineering team in 2021.

History with the Crypto Sector

Stripe has been the payment processor for X (formerly Twitter) and introduced a program in 2022 allowing creators on the platform to receive payments in USDC on Polygon. Additionally, Stripe created fiat-to-crypto on-ramps via APIs in collaboration with cryptocurrency exchanges.

To cater to U.S. customers, Stripe initiated a fiat-to-crypto on-ramp, undertaking conversion and compliance obligations such as Know Your Customer and fraud prevention, following the examples set by Venmo and Robinhood.

As reported earlier by TheCoinRise, Stripe launched a fiat-to-crypto on-ramp to solve the “cold start problem” that Web3 firms experience owing to clients not having “crypto in their wallets to carry out transactions.”

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