Stripe Reintroduces Cryptocurrency Payments with USDC Stablecoins
A Cautious Return to the Crypto Market
Stripe, the financial technology powerhouse, is making a calculated return to the cryptocurrency market. The company announced on Thursday that it will allow customers to accept payments in USDC stablecoins, initially limited to the Solana, Ethereum, and Polygon platforms. This marks Stripe’s first foray into crypto payments since 2018 when it discontinued support for Bitcoin due to its volatility.
Stablecoin Payouts: A Stepping Stone
In 2022, Stripe tested the waters by introducing USDC payouts (but not payments) with Twitter as its flagship customer. While Thursday’s announcement did not mention any specific customers, it signifies a broader move towards embracing cryptocurrency.
Transaction settlements are no longer comparable with Christopher Nolan films for length. And transaction costs are no longer comparable with Christopher Nolan films for budget. Stripe is bringing back crypto payments — this time with stablecoins, which are a way better experience.
Stripe co-founder and president John Collison shared these remarks during the company’s Connect developer conference in San Francisco.
Opening the Walled Garden
Stripe’s decision to expand crypto support aligns with its broader strategy of opening up its closed ecosystem. On Wednesday, the company announced that it would allow customers to integrate rival payment providers with Stripe’s other financial services tools, a significant departure from its previous approach.
Stripe’s Crypto Timeline: A Balancing Act
Stripe’s relationship with cryptocurrency has been a delicate dance over the years. As a disruptive fintech, the company has sought to be at the forefront of discussions surrounding blockchain technology’s impact on financial services. However, it has also been cautious not to undermine its core business and reputation as a reliable financial giant. In 2022, Stripe processed $1 trillion in transactions and is currently valued at $65 billion.
- 2014: Stripe launched its first cryptocurrency efforts with Bitcoin tests.
- 2018: Stripe discontinued Bitcoin support, citing volatility and instability.
- June 2019: Stripe became a founding member of Facebook’s Libra project.
- October 2019: Stripe, along with others, withdrew support for Libra.
- 2022: Stripe introduced USDC payouts with Twitter.
Looking Ahead
Given Stripe’s history with cryptocurrency, it remains to be seen whether the company will maintain its current course and how its efforts will evolve. However, Stripe is reportedly evaluating other stablecoins and platforms, indicating a renewed interest in the crypto space, at least for the time being.
2 Comments
Stripe’s jumping back into crypto with USDC? Bold move, let’s see if it pays off!
Well, it’s about time Stripe caught up with the crypto craze, USDC is just the beginning!