The payments company, Checkout.com has announced that it will let users settle payments in the USDC stablecoin from now on.
New Payment Option On Checkout.com
The feature, which would allow merchants to transact in stablecoin, has already been tested privately with select clients for transactions worth around $300 million in the past few months. Next on the roster is Bahama-based crypto exchange FTX, which will be one of the first to use the product in its entirety as it is released globally. Stablecoins allow investors to easily trade in and out of digital currencies without depending on central authorities like banks. Therefore, it is pretty appealing to merchants who can dabble in digital assets without fully committing their funds to it.
Speaking on the decision to adopt stablecoins into the Checkout.com ecosystem, the company’s Head of Crypto Strategy, Jess Houlgrave, said,
“Stablecoins started as a fiat-denominated asset used by crypto traders to easily move in and out of more volatile crypto assets, but we believe they will also play a fundamental role in improving the underlying payment landscape.”
Why Stablecoins?
To facilitate the adoption of the USDC stablecoin on its platform and also to ensure the safety and security of customer funds, the fintech giant is partnering up with crypto-security firm Fireblocks. As a result, merchants would be able to settle payments round-the-clock using the USD Coin, the world’s second-largest stablecoin, pegged to the U.S. dollar. They would even be able to conduct transactions on the weekends and public holidays, which is a definite advantage over fiat payments.
VP of Payments at Fireblocks, Ran Goldi, has pointed out that the stablecoin payment feature will significantly benefit merchants and small business owners, saying,
“Traditionally, merchant payouts are limited to 9-5 on weekdays excluding public holidays and are further delayed through batch processing over several business days. Checkout.com’s weekend settlement means that merchants are no longer restricted by arbitrary settlement times.”
Circle And USDC
Stablecoins have been going through some turbulent times lately, owing to the devastating Terra (LUNA) crash that happened when the UST stablecoin lost its dollar peg. However, financial technology-based businesses are still showing faith in these assets. Circle, has recently raised $400m to develop the USDC standard. The CEO of the company, Jeremy Allaire, also spoke out following the Terra crash, confirming the safety and stability of the USDC stablecoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
