Coinbase launches new payment platform, bringing stablecoins to e-commerce

Coinbase Global Inc. has announced the launch of a new platform designed to make stablecoins a mainstream payment method for online transactions.

This is seen as a potentially important step in promoting widespread adoption of USD-pegged cryptocurrencies.

The announcement comes shortly after the US Senate passed a landmark stablecoin bill on June 17.

The move also comes as major retailers increasingly express interest in using stablecoins for online payments, an industry estimated to be worth around $6 trillion.

The adoption of this cryptocurrency is likely to surpass traditional payment card networks such as Visa Inc. and Mastercard Inc. as well as other online payment services.

Stablecoin is a digital currency whose value is pegged to a stable asset, such as fiat currency or gold, to maintain a stable value.

They are designed to minimize the price volatility commonly seen in other cryptocurrencies, making them more suitable for everyday transactions and long-term investments.

“We built the new system to mimic the credit card infrastructure, so it can easily integrate into existing processes without causing any disruption,” said a Coinbase spokesperson.

Coinbase Payments platform is targeting e-commerce giants like Shopify and eBay.

This is a valuable customer segment for payment processors, as these sites provide a distribution channel for thousands of small and medium-sized enterprises (SMEs), which are often looking to avoid the high fees associated with accepting card payments.

Coinbase’s first customer is Shopify, which will partner with Coinbase and Stripe Inc. to enable Shopify merchants to accept Circle’s stablecoin USDC via Coinbase’s Base network, a Layer 2 blockchain solution built on Ethereum.

Coinbase's new payment service promises to give e-commerce platforms faster transaction processing speeds, lower costs, and instant access to a global customer base.

Notably, earlier this week, JPMorgan Chase & Co. also announced that it would pilot a tokenized USD deposit program called JPMD on the Base chain.

Coinbase's payment products include a suite of payment tools that make it easy for consumers to pay from cryptocurrency wallets like Coinbase Wallet, MetaMask, Phantom, and others.

Stripe also recently announced plans to acquire Privy, a company that helps merchants embed cryptocurrency wallets directly into their websites.

This allows them to accept stablecoin payments without requiring customers to go to a third-party website to set up a wallet, a process that is often inconvenient and reduces customer transaction completion rates.

Another important feature of the Coinbase platform is the connectivity layer for merchants and payment providers, which supports transaction authorization, refund processing, and subscription management.

The third component is a payment protocol that enables merchants to make transactions directly on the blockchain.

The entire suite is designed to make it easy for online merchants and platforms to integrate stablecoin payments without requiring them to have in-depth knowledge of blockchain technology or cryptocurrencies.

In addition, Coinbase also announced that it has signed an agreement to allow the use of USDC as collateral in futures trading in the US.

According to an announcement on Coinbase's website, Coinbase Derivatives is partnering with clearinghouse Nodal Clear to work with regulators, with the expectation that this will be the first time USDC is approved for use as collateral under regulatory oversight./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/coinbase-tung-nen-tang-thanh-toan-moi-dua-stablecoin-vao-thuong-mai-dien-tu-post1045176.vnp