Coinbase, a major US crypto exchange, has teamed up with payments giant Stripe to bolster the adoption of USDC on the Base network. This strategic partnership aims to enhance on-chain financial infrastructure and provide faster, more efficient money transfers.

Key Integrations

In a recent announcement, Coinbase revealed that Stripe would integrate support for the layer 2 network Base across its product suite. This partnership will implement three crucial integrations:

1. Support for USDC on Base in Stripe’s Crypto Payouts Product: This integration will enable faster and cheaper money transfers, leveraging Stripe’s global network.
2. USDC on Base in Stripe’s Fiat-to-Crypto Onramp: This will streamline the process of converting fiat currency to cryptocurrency, making it more accessible to users.
3. Addition of Stripe’s Fiat-to-Crypto Onramp to Coinbase Wallet: This will enhance the functionality of Coinbase Wallet, providing users with more options for converting and managing their assets.

Impact on Users and the Industry

Jesse Pollak, the creator of Base, highlighted the benefits of these integrations, emphasizing how they lay a strong foundation for future advancements in payments technology. The support for Base is expected to provide Stripe’s vast user base with access to faster and cheaper money transfers, enhancing the overall user experience.

Growth of the Base Network

Base has shown significant growth since its public mainnet launch in August 2023. The network’s monthly active addresses are projected to increase by 56% from May to June, reaching 6.18 million. This growth is significant, nearing three-quarters of Coinbase’s monthly transacting users. Base has also amassed over $7 billion in total value locked (TVL), making it the second-largest layer 2 network.

Coinbase’s Strategy and Future Plans

Max Branzburg, Coinbase’s head of product, stated that the company plans to store more of its corporate and customer USDC balances on Base. This strategy aims to secure funds with lower fees and faster settlement times, potentially driving significant revenue growth for Coinbase.

Stripe’s Evolving Relationship with Cryptocurrencies

Stripe has had a complex relationship with cryptocurrencies. Despite being an early adopter of bitcoin payments in 2014, the company dropped support four years later due to rising transaction times and failure rates. However, Stripe remained optimistic about cryptocurrencies and has gradually reintroduced support. In April, Stripe enabled businesses to accept payments using stablecoins, marking a significant step towards embracing digital currencies.

The partnership between Coinbase and Stripe marks a pivotal moment in the crypto and payments industry. By integrating USDC support on Base, the two companies are set to provide faster, more efficient financial infrastructure, paving the way for broader on-chain adoption and a more robust payments future.