In a significant move, the fintech giant Stripe has announced its return to the cryptocurrency market, this time with a focus on stablecoin payments. After a six-year hiatus, the company will once again allow its customers to accept cryptocurrency payments, starting with the USDC stablecoin on the Solana, Ethereum, and Polygon blockchains.
Stripe’s co-founder and president, John Collison, made the announcement during the company’s Connect developer conference in San Francisco. “Crypto is finally making sense as a means of exchange,” Collison said, highlighting the improvements in transaction speeds and reduced costs compared to the company’s previous experience with Bitcoin in 2018.
The decision to reenter the crypto space comes after Stripe’s initial foray into the industry in 2014, when it became one of the first major payment providers to adopt Bitcoin. However, the company discontinued its Bitcoin support in 2018, citing the cryptocurrency’s volatility and its evolution into a more asset-like instrument rather than a medium of exchange.
Stripe’s latest move marks a strategic shift, as the company now sees stablecoins, such as USDC, as a more viable option for facilitating crypto payments. “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,” Collison quipped, emphasizing the improved user experience with stablecoins.
The announcement also comes as part of Stripe’s broader strategy to open up its walled garden and allow customers to integrate competing payment providers with its financial services tooling. This move signals the company’s willingness to adapt to the evolving landscape of the fintech industry.
Stripe’s history with cryptocurrency has been a rollercoaster ride. After its initial foray into Bitcoin, the company withdrew from the crypto market in 2018, citing concerns over volatility and the cryptocurrency’s suitability as a means of exchange. The company then briefly joined the Libra (now Diem) project in 2019, only to withdraw its support later that year.
Now, with the rise of stablecoins and the growing adoption of blockchain-based technologies, Stripe sees a renewed opportunity in the crypto space. The company’s decision to support USDC payments on multiple blockchains suggests a more cautious and strategic approach, as it aims to leverage the stability and utility of stablecoins while mitigating the risks associated with the broader cryptocurrency market.
As Stripe navigates its return to the crypto realm, industry observers will be closely watching to see if the company can maintain its position as a stable and sensible financial powerhouse while embracing the disruptive potential of blockchain-based technologies.
