Major United States-based cryptocurrency exchange Coinbase announced that its cryptocurrency payment processor Coinbase Commerce now supports Circle’s stablecoin USD Coin (USDC) in a blog post on May 20.
Per the announcement, Coinbase Commerce users can now accept USDC payments with no transaction fees. The announcement specifies that “unlike accepting credit card payments, merchants can accept USD Coin without geographical limitations or the need for a traditional bank account.”
Additionally, Coinbase states that accepting stablecoins allows merchants to benefit from cryptocurrency transactions while avoiding the volatility characteristic of un-pegged digital assets.
A recent report by the European Central Bank found that cryptocurrencies do not have significant implications on monetary policy or the broader economy, in part because only a small percentage of merchants accept crypto payments for goods and services.
Coinbase Commerce was launched in early 2018. The service allows merchants to accept multiple cryptocurrencies and can be integrated into the checkout flow and be added as a payment option on major e-commerce platforms.
USD Coin is an Ethereum-based (ETH) token compliant with the ERC20 standard that was first announced in May last year and released in September.
As Cointelegraph reported earlier today, cryptocurrency research firm Diar indicates that the market capitalization for USD stablecoins has hit an all-time high and exceeds $4 billion.