FinTech: Stripe And Twitter To Test Crypto Payouts
Stripe’s Connect will allow crypto payments using USDC.
Stripe said in a blog post today that it had been exploring cryptocurrency-based platforms to facilitate payouts to creators, freelancers, sellers, and solopreneurs across the world. The “open-access global financial rails” offered by cryptocurrencies were highly attractive to Stripe given that the Connect service could not still reach many countries due to heterogeneous local payment systems. In a pilot, the payments giant is testing crypto payouts for Connect via a select group of creators on Twitter (NYSE: TWTR), its first partner. (Stripe)
Stripe and crypto payouts with Twitter
In the pilot, Twitter will allow its creators to opt-in for payouts to be made to a crypto wallet.
Creators and freelancers who opt to be paid in crypto will pass through Stripe’s normal onboarding flows. Stripe will perform comprehensive KYC, and the flow will dynamically adapt as cryptocurrency regulations evolve.
“Stripe will handle all crypto-related complexity and operations. No code changes are required, and platforms can avoid taking on the challenges of acquiring, storing, or transferring crypto themselves,” Stripe writes.
Stripe will execute the payouts on the Polygon network using the USDC dollar-pegged stablecoin.
The payments giant selected Polygon for its low fees, speed, integration with Ethereum, and broad wallet compatibility (including MetaMask, Coinbase Wallet, and Rainbow).
Stripe said the Global Payments and Treasury Network (GPTN), its infrastructure and service architecture that enables global, programmable money movement, was extending beyond traditional rails with the addition of crypto payouts.
“We’re excited about what this represents and about the potential for cryptocurrencies to help solve real-world problems, especially outside of major markets,” the company said. “By the end of the year, we plan to support crypto payouts in more than 120 countries.”
Related Story: Stripe Returns To Crypto With A Focus On Business Solutions
Image credit: https://www.circle.com/en/usdc
Latest Alternative Investment News
Michael Saylor, CEO of MicroStrategy (NASDAQ: MSTR), who is permanently bullish on bitcoin, reiterated his positive outlook for the leading crypto in an interview on Thursday. Note that MicroStrategy currently…
The crypto world was dealt a body blow by the collapse of the TerraUSD (UST) stablecoin earlier this month. The Terra meltdown is now being referred as crypto’s “Lehman moment.”…
Fast-growing, Southeast Asia-focused payments infrastructure platform Xendit closed on a US$300 million Series D funding co-led by Coatue and Insight Partners with additional investment from Accel, Tiger Global, Kleiner Perkins,…
FTX Stocks is an equity trading platform offered through the FTX US trading application. FTX US announced Thursday a private beta phase trading on the platform for US customers selected…