- Stripe has announced support for USDC payments
- The company abandoned crypto payments in 2018 due to volatility concerns
- Stripe says that stablecoin stability is a key factor in the decision to re-engage with crypto
Payment giant Stripe has unveiled plans to re-enter the cryptocurrency market by allowing its customers to accept the USDC stablecoin. This move marks a significant shift for the company, which had withdrawn support for Bitcoin payments back in 2018 due to concerns about the cryptocurrency’s volatility. Stripe co-founder and president John Collison highlighted the improved stability provided by stablecoins as a key reason for the company dipping its toe back into the crypto pool.
Ten Years of Back and Forth
Stripe’s history with cryptocurrencies has been somewhat tumultuous. In 2014, the company ventured into the crypto space with tests on accepting bitcoin payments but ultimately pulled back four years later due to concerns about its suitability for payments, given the high fees, long transaction times, and volatility.
The company was also one of the founding members of Facebook’s Libra project in 2019 but was one of the many that later withdrew its support, citing uncertainties surrounding the initiative.
Stripe tested crypto-related features in 2022, such as USDC payouts, and it seems that the experiment was successful, with the payment processor expanding its use of the stablecoin to include payments. By offering support for stablecoins on platforms like Solana, Ethereum, and Polygon, Stripe aims to provide its customers with more flexibility and choice when accepting payments.
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
More Good News for USDC
USDC will be the only cryptocurrency accepted in this initial stage with the company not ruling out further additions down the line. The move is another boost for USDC and its issuer, Circle, which is rapidly becoming the stablecoin of choice for companies that want to stay the right side of new regulations.
Binance also recently converted its $1 billion SAFU fund from TUSD, BNB, BTC, and USDT to USDC, marking a huge sign of confidence in the coin.
