In a bid to revolutionize its Commerce product, cryptocurrency exchange giant Coinbase has rolled out its innovative open-source “Onchain Payment Protocol.” It aims to deliver instant settlement, reduced fees, and extensive asset support, enhancing the overall payment experience for both merchants and customers, according to the announcement.
Coinbase Commerce, has witnessed widespread global adoption, with thousands of merchants globally having received billions of dollars in on-chain payments through the platform. Despite its success, the company acknowledges that merchants grapple with crypto volatility, and consumers often find the payment process intimidating.
Coinbase’s Update Shields Against Crypto Volatility
The newly updated Commerce product, built on the Onchain Payment Protocol, addresses these challenges by automatically converting customers’ crypto holdings to the stablecoin USDC. This conversion effectively shields users from the volatility associated with cryptocurrencies. The protocol presently accommodates any wallet and supported token within the Ethereum, Polygon, and Base ecosystems, with plans to expand to additional networks in the near future.
Lauren Dowling, Head of Product — Developer Payment Services at Coinbase, explained the significance of the update, stating, “This Commerce update allows users to pay in hundreds of currencies across Ethereum, Base, and Polygon, both native currencies and ERC-20s. Coinbase retail customers will be able to pay in every asset that is supported by our exchange.”
Merchants stand to benefit significantly from the update, according to Dowling. The new system empowers merchants to tap into the vast user base of global crypto enthusiasts willing to transact on-chain. Moreover, the update drastically reduces transaction costs compared to the hefty fees associated with credit card transactions, providing an added advantage to merchants. Additionally, it eliminates exposure to the unpredictable nature of crypto market fluctuations.
Even in the face of a challenging market environment, the exchange remains steadfast in its commitment to innovation. In August, the company launched Base, a Layer 2 network built on top of Ethereum. Currently, Base ranks as the third-largest scaling network in terms of total value locked, trailing behind Arbitrum and Optimism, as per DefiLlama data.
Furthermore, Coinbase Financial Markets, Inc. (CFM) received regulatory approval in August to introduce federally regulated crypto futures trading for eligible U.S. customers. This paved the way for Coinbase Advanced customers in the U.S. to engage in leveraged crypto futures contracts through CFM.
Traders in the U.S. can now seamlessly navigate both spot and futures trading through the integrated, secure, and user-friendly Coinbase Advanced platform. Coinbase continues to lead the charge in advancing the crypto landscape, offering innovative solutions to meet the evolving needs of users and merchants alike.
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