Stripe, the global payment processing giant, has announced its return to the cryptocurrency market by supporting payments in USDC stablecoins across Ethereum, Polygon, and Solana networks. This move marks a significant shift since Stripe discontinued working with digital assets in 2018 due to their "volatility."
Stripe's re-entry into the crypto space was highlighted by the company's co-founder and president, John Collison, who remarked, "Payments are no longer akin to a Christopher Nolan movie in duration and transaction costs. We are bringing back crypto payments, this time with stablecoins, which are much more convenient."
According to TechCrunch, Collison will make a formal announcement about the launch of crypto payments at the Connect developer conference in San Francisco later this week. In 2023, Stripe processed transactions worth $1 trillion, and its valuation rose to $65 billion following a sale of shares to employees.
Previously, in 2018, Stripe had stepped back from cryptocurrency transactions, citing the instability of these assets. Four years later, the company attempted to re-enter the crypto market, announcing support for payouts in Connect with social network X (formerly Twitter) as its primary and sole client.
In March 2023, the payment service provider secured $6.5 billion in funding. Stripe also entered into a partnership with Consensys, the developer behind the MetaMask crypto wallet. This collaboration allows U.S. customers to purchase cryptocurrencies using debit and credit cards, streamlining the process and enhancing access to digital assets.
Stripe's strategic decision to adopt stablecoins, which are pegged to stable assets like the US dollar, mitigates concerns over the volatility that previously deterred the firm from crypto transactions. This renewed approach indicates Stripe's commitment to adapt to the evolving financial landscape where digital currencies play a significant role.
