Stripe Implements Avalanche to Solve Web3’s “Cold Start Problem”

Reading Time: 2 minutes
  • Payments firm Stripe has integrated with Avalanche to ease the purchase of assets on the blockchain
  • The move is part of Stripe’s mission to solve the “cold start problem” experienced in the web3 space
  • Developers on Avalanche can now embed a Stripe-connected widget on their creations to ease asset trading

Payments firm Stripe has integrated with the Avalanche blockchain assisting in the adoption of cryptocurrency and other blockchain-based assets like NFTs. According to Stripe, the move is part of its efforts to solve the “cold start problem” experienced by web3 companies. The integration enables creators on the Avalanche blockchain to offer Stripe-powered payments on their project’s interface, something that prevents the use of crypto exchanges and NFT marketplaces when trading assets on the blockchain.

Accessing Web3’s Power

In an announcement, Avalanche’s creator Ava Labs disclosed that the integration was done through its ecosystem wallet, Core. The wallet’s users can now use Stripe to fund their wallet “using ACH, debit and credit cards.”

According to Ava Labs, the integration is already being supported by “Avalanche ecosystem partners” like web3 games Shrapnel and DeFi Kingdoms and permissionless staking platform GoGoPool.

Ava Labs’ Akash Gupta noted that the move shows Avalanche’s commitment to providing “streamlined solutions [and] seamless onboarding.” Stripe’s John Egan commented on the development saying it makes it “easy for everyone to access the power of web3.”

A Self-hosted Fiat-to-crypto Service

The cooperation between the two platforms comes roughly a year after the payments firm launched a self-hosted fiat-to-crypto service targeting blockchain developers. The fiat-to-crypto onramp was born after Stripe announced its intentions to support businesses in the crypto and web3 space in 2022.

Three days ago, the payment processor made another step into the crypto space by allowing USDC payments as it looks to revive its crypto ambitions. Avalanche is working to onboard more people into the crypto/blockchain train through partnerships with traditional firms like Alibaba. 

Other conventional finance entities like Citibank have also in the past leveraged the Avalanche blockchain to explore tokenization.

With Stripe easing the process of purchasing assets on Avalanche, the move is likely to boost the blockchain’s usage.