Paxos has launched a new platform called Stablecoin Payments Platform, with Stripe as its first customer. The platform simplifies the process for businesses to accept stablecoins. Stablecoins are cryptocurrencies that maintain a value comparable to traditional currencies such as the US dollar.
Paxos, known for its secure and regulated blockchain services, has partnered with leading payment processing company Stripe. Together, they streamline the use of stablecoins in transactions, fusing Paxos’ stablecoin technology with Stripe’s trusted payments system.
The platform allows businesses to accept payments in stablecoins, offering faster transactions and lower fees than traditional methods. It seamlessly integrates with existing business systems and simplifies the implementation of stablecoin payments.
Businesses will benefit from faster payments, streamlined onboarding, and instant conversion between USD and USDP, PYUSD, and USDC stablecoins.
Ronak Daya, head of product at Paxos, believes stablecoins represent the future of payments and remittances. According to Daya, adoption will continue to increase as companies realize the benefits of stablecoins, such as instant, secure, and cost-effective global transactions.
Paxos’ new stablecoin payments platform enables businesses to efficiently receive payments, send payments, and manage global transactions.
Stripe’s head of crypto, John Egan, said Stripe is continually looking for ways to simplify and reduce payment costs for businesses around the world. He highlighted that the partnership with Paxos will enable Stripe to offer stablecoin payments through its Pay with Crypto service, facilitating digital payments from customers around the world.
The platform launch follows a pivotal moment in July 2024 when the U.S. Securities and Exchange Commission (SEC) closed its investigation into Paxos’ Binance USD (BUSD) stablecoin without taking legal action. It is. Paxos specializes in digital currencies, including Binance USD (BUSD).
In 2023, the US government scrutinized BUSD, and the SEC warned Paxos of possible legal action, suggesting that BUSD could be classified as a security. New York financial regulators then directed Paxos to stop issuing new BUSD.
However, in 2024, after a lawsuit, the SEC chose not to take legal action. The court found that there was insufficient evidence to classify BUSD as a security. Paxos welcomed this decision, believing it confirms the legal compliance of stablecoins.
Earlier this year, Stripe announced plans to restart its cryptocurrency payments service and allow users to pay with stablecoins starting this summer.
