Financial service provider Stripe has big plans for the upcoming summer, which include enabling crypto payments with USDC stablecoin on the Solana blockchain.
The Sojourn Away From Crypto .
Stripe co-founder John Collison revealed that the platform will now accept global stablecoin transactions. He also indicated that the crypto transactions will “immediately” settle to fiat.
Stripe plans to limit crypto payments initially to Circle-issued USDC. Stripe will accept payments in Circle-issued USDC across three blockchains: Solana, Ethereum, and Polygon. Collison said during his keynote speech that with the relaunch of cryptocurrency settlements, Stripe is providing its users with a significantly better experience.
For background, Stripe banned cryptocurrency payments on its platform in 2018 because of the extreme volatility that Bitcoin (BTC) was experiencing at the time. Additionally, the business considered its main cryptocurrency an asset rather than a means of trade. Stripe was concerned about Bitcoin’s lengthy transactions and rising fees at the time.
Bitcoin experienced its first significant winter during this period, which resulted in a price decline from $19,650 in December 2017 to $3,401 at the end of 2018. With Facebook’s Libra project, Stripe attempted a resurgence the following year after leaving the digital asset industry. Because Libra rarely saw the light of day, Stripe’s recovery was cut short.
In 2022, the payment firm revealed a technology that permits fiat-to-crypto payments.
Stripe Identifies The Prospect and Chose USDC
Reviving its engagement in cryptocurrency-based business indicates that Stripe has recognized opportunities in its strategy. The company uses this tactic to adapt to its clients’ changing needs.
This time, Stripe feels that “Crypto is finding real utility,” Collison added. “We’re seeing crypto finally making sense as a means of exchange,” he said, recognizing the continued improvement in the speed of cryptocurrency transactions and their decreasing cost.
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
The selection of USDC shows that the US dollar-pegged stablecoin is becoming more well-known worldwide. Charles Hoskinson, founder of Cardano (ADA), sees his creation as a forerunner in the world of Central Bank Digital Currencies (CBDC). This viewpoint isn’t unfounded. Cardano’s design prioritizes features that align with CBDC goals, such as scalability, security, and regulatory compliance.
In a significant development, Circle recently introduced a groundbreaking smart contract feature. A groundbreaking smart contract feature from Circle simplifies investing in USDC. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) holders can now effortlessly convert their shares into USDC by transferring them directly to Circle. This innovation streamlines exiting the BUIDL fund for investors, allowing them to maintain exposure to digital dollars through USDC.
Stripe plans to launch its USDC-Solana integration later this summer.
