Stripe is re-entering the cryptocurrency market with a new approach after pausing in 2018 due to Bitcoin’s volatility.
This Thursday, Stripe announced plans to allow customers to accept payments in cryptocurrency, starting with USDC stablecoins.
Stripe’s Fresh Start in Cryptocurrency After 2018 Pause
The choice of USDC stablecoins is notable because it ties the cryptocurrency’s value directly to the US dollar. This aims to mitigate the volatility issues that previously deterred Stripe from crypto transactions. Initially, this service will support transactions on three major blockchain platforms: Solana, Ethereum, and Polygon.
Crypto is back. @Stripe will start supporting global stablecoin payments this summer. Transactions instantly settle on-chain and automatically convert to fiat. Join the waitlist https://t.co/hws2OsU3Id and watch the demo (h/t @Solana) from Sessions. pic.twitter.com/zGKYW2FM6i
— John Collison (@collision) April 25, 2024
Stripe’s initial foray back into the crypto space began in 2022, albeit in a limited capacity, when it facilitated payouts in USDC. This service was highlighted by its adoption by Twitter, serving as a high-profile test case for Stripe’s re-entry strategy. Unlike the 2022 initiative, the latest announcement did not mention specific customers, suggesting a broader target audience and perhaps a more generalized market approach.
Stripe’s decision to reintegrate cryptocurrency transactions into its offerings comes at a time when the digital currency market is maturing, with increased regulatory clarity and growing mainstream acceptance. By choosing stablecoins as a starting point, Stripe aims to balance the innovative appeal of cryptocurrencies with the need for stability and reliability in financial transactions.
Exciting news today: @Stripe cofounder @collision previewed news that Stripe will accept $USDC payments on @Solana, @ethereum, & @0xPolygon starting this summer. šš„ https://t.co/2fM2awxH9s
— Circle (@circle) April 25, 2024
This approach may attract businesses looking for new payment solutions without exposing them to the significant price fluctuations associated with other cryptocurrencies.
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