• Stripe announced it will start allowing customers to accept cryptocurrency payments, starting with USDC stablecoins, initially only on Solana, Ethereum and Polygon
• This is the first time Stripe has accepted crypto payments since dropping support for Bitcoin in 2018 due to its instability
• Stripe has had a complex relationship with cryptocurrencies over the years, initially supporting Bitcoin, then joining and quickly leaving the Libra project, before testing crypto payouts with Twitter in 2022
Stripe, the payments company, is re-entering the cryptocurrency market after dropping support in 2018. The company will now allow customers to accept payments in USDC, a stablecoin, on several blockchains.
Background on Stripe and Crypto
Stripe first began testing Bitcoin payments in 2014, but ended support in 2018 due to Bitcoin’s volatility and unsuitability for payments. In 2019, Stripe joined the Libra Association to develop the Libra cryptocurrency, but later withdrew. Earlier this year, Stripe enabled Twitter to send USDC payouts to creators.
New Support for USDC Payments
On Thursday, Stripe announced it will support USDC payments on the Solana, Ethereum, and Polygon blockchains. USDC is a stablecoin pegged to the US dollar, aimed at minimizing volatility. Stripe co-founder John Collison framed the move as part of enhancing Stripe’s payments infrastructure.
Stripe’s On-Again, Off-Again Relationship with Crypto
As a fintech disruptor, Stripe has repeatedly shown interest in exploring blockchain payments. However, it has pulled back during periods of instability to focus on its core business as a financial services provider. With USDC, Stripe appears to be dipping its toes back into crypto through one of the more mainstream and stable options.
What This Means Going Forward
It remains to be seen whether Stripe will commit long-term to crypto or view USDC as an experimental offering. But the move aligns with its recent efforts to open up its platform and integrate other payment methods. Stripe seems to be cautiously re-entering crypto by starting with a stablecoin.
