In a significant move for the cryptocurrency world, leading digital asset exchange Coinbase Global Inc. (NASDAQ:COIN) and payment processing giant Stripe have unveiled a strategic alliance aimed at enhancing cryptocurrency payment solutions.
What Happened: As part of the partnership, Stripe will incorporate Coinbase’s Layer 2 network, Base, into its cryptocurrency payout products, according to a press release Thursday. Simultaneously, Coinbase will integrate Stripe as a payment method, enabling customers to buy cryptocurrencies using credit cards or Apple Pay within the Coinbase Wallet.
Stripe users will be able to use stablecoin USD Coin (CRYPTO: USDC) via Base, allowing for speedier cross-border transactions to over 150 countries. Furthermore, the interface would allow U.S. consumers to easily convert their fiat money to cryptocurrency.
See Also: Uncle Sam On The Move: US Government Transfers Millions In Bitcoin To Coinbase
Coinbase underscored the importance of this collaboration, stating, “These three key integrations lay a strong foundation for Stripe and Coinbase to begin building a better payment future for users around the world.”
Why It Matters: This partnership comes two months after Stripe’s re-entry into the cryptocurrency space, with a focus on stablecoins for online transactions. Stripe’s co-founder, John Collison, cited faster transaction speeds and lower fees as reasons for their renewed interest in crypto.
Meanwhile, in a major legal confrontation, Coinbase sued the SEC and the Federal Deposit Insurance Corporation, accusing them of trying to stifle the cryptocurrency industry’s access to the banking sector.
Price Action: Shares of Coinbase closed 4.39% higher at $224 during Thursday’s regular session, according to data from Benzinga Pro.
Photo by Below the Sky on Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
