Stripe has launched long-awaited support for stablecoin transactions, with the payments company reporting that it facilitated transactions in 70 countries on its first day of operation.
The company did not disclose the number of stablecoin transactions or the amount transferred. Stripe currently supports Circle’s USDC on Ethereum, Solana, and Polygon blockchains, and Pax Dollar on Ethereum and Solana. Stablecoin payments made on Stripe’s platform are converted to USD upon receipt and stored in the user’s Stripe wallet, minus a 1.5% transaction fee.
“The integration of multiple blockchains is key here,” said Joel Hugentobler, crypto analyst at Javelin Strategy & Research. “Polygon, and Solana in particular, enable much faster and cheaper transactions than Ethereum-based products that don’t utilize Layer 2. A 1.5% fee is quite high in my opinion, but it’s a great addition to the stablecoin space. I imagine Stripe might do the same as more payment providers come on board.”Let’s be more competitive.” ”
Focusing on stable coins
Stripe has been an advocate of cryptocurrency adoption since adding Bitcoin as a payment option a decade ago. However, the company was forced to change its stance a few years later due to the high costs and difficulty of processing Bitcoin transactions.
Earlier this year, Stripe announced that it would be working with Coinbase to bring back cryptocurrencies to its platform, but this time with a focus on stablecoins, with a particular focus on USDC in its digital asset strategy.
suitable for unique
The majority of Stripe’s customers are in the e-commerce space, and they are always looking for ways to reach more customers at a lower cost. The company believes that stablecoins are uniquely suited to meet that need.
“This news is further evidence supporting our hypothesis at Javelin, which, simply put, is that the use of stablecoins will continue to grow in the coming months, especially in cross-border payments such as remittances. It’s going to skyrocket in a few years,” Hugentobler said. “We see that participants from 70 countries have used this new payment solution.”
“While the U.S. economy is relatively stable, many other countries have much higher inflation and fiat currency depreciation rates, limited access to the dollar and more stable currencies, and Access to possible savings instruments is also limited.” “These issues show that a dollar-pegged stablecoin like USDC is a legitimate solution. It is a faster and more cost-effective payment method.”
