Technology

Stripe Expands Crypto Presence With Avalanche Integration – Crypto News

Published

1 year ago

April 29, 2024

Dripp

Financial service company Stripe has inked a strategic partnership with blockchain network Avalanche, as it pursues crypto presence expansion.

Accessing Avalanche Through Stripe

Avalanche took to X to announce the significant integration with Stripe, citing that users of the popular financial platform can now purchase AVAX directly. Noteworthy, these customers do not require the complex services of a crypto exchange to complete their AVAX transactions.

This new development comes only a few days after Coingape hinted at Stripe’s plan to re-introduce crypto payments this summer, jumpstarting the process with the United States dollar-pegged stablecoin USDC on Solana, Ethereum, and Polygon blockchains. According to Stripe co-founder John Collison, the financial service provider is offering its users a much better experience with the relaunch of crypto settlements.

As part of its new deal with Avalanche, Stripe’s innovative fiat-to-crypto onramp has been integrated into Avalanche’s ecosystem, particularly in its Core wallet. Hence, users can fund their wallets by using various payment methods like ACH transfers, and debit and credit cards.

Avalanche and Stripe achieved most of these features by embedding a customizable widget into the former’s decentralized applications (DEXes), Non-fungible Token (NFT) platforms, and digital wallets.

Stripe Addresses Cold Start Problem

To create a Core wallet, interested users will only need to complete simple authentication processes like Gmail or Apple ID. Thereafter, one could easily buy AVAX directly through the Core extension or web app by utilizing Stripe. It is worth noting that this integration tackles the challenge of initial funding that new users usually encounter once they try to come on board the Web3.0 ecosystem.

The “cold start problem,” as it is referred to, is addressed by the provision of necessary funds to help users perform transactions without hassle. Stripe also takes on all the Know-Your-Customer (KYC), payments, and compliance parts of the process.

Aside from offering seamless crypto transaction services, this partnership between Stripe and Avalanche marks another integration targeted at bridging the gap between traditional finance and decentralized finance (DeFi). Akash Gupta, Head of Consumer Products at Ava Labs, and John Egan, Head of Crypto at Stripe, described this partnership as a stride toward making digital currencies more accessible and usable for daily transactions.

The integration is yet to have any impact on the price of AVAX as the crypto is down by 0.47% and trading at $34.69.