Coinbase (NASDAQ:COIN) has taken a significant step toward simplifying cryptocurrency transactions with the unveiling of its Onchain Payment Protocol. This open-source solution aims to address the challenges posed by volatility, offering benefits such as instant settlements, reduced fees, and expanded asset support. Coinbase envisions the protocol as a transformative tool for online payments, comparable to how the internet revolutionized information accessibility.
Launched on Thursday, the protocol is seamlessly integrated into Coinbase’s Commerce product, targeting global merchants by simplifying and enhancing the payment process. It facilitates a unified setup for merchants and supports smooth integration with popular e-commerce platforms like WooCommerce, Primer, and Jumpseller. The protocol’s innovative approach ensures volatility-free payments by automatically converting cryptocurrencies into USD Coin (USDC), providing stability in transaction values amidst market fluctuations.
Key advantages of the Onchain Payment Protocol include:
Low transaction fees and instantaneous settlements across various cryptocurrencies.
Real-time transaction validation for Coinbase’s verified users, improving the overall user experience.
Support for multiple currencies on Base, Ethereum, and Polygon networks, with plans to extend to Solana (SOL) and Avalanche (AVAX) perpetual futures contracts for US retail traders.
Addressing common challenges in the crypto payment process, the protocol reduces decline rates and minimizes chargeback risks. It guarantees error-free payments and offers flexible payment options, streamlining the checkout process for customers and providing instant payment confirmation.
By facilitating billions in on-chain payments, Coinbase’s Onchain Payment Protocol aims to simplify cryptocurrency integration for thousands of merchants worldwide. This initiative underscores Coinbase’s commitment to nurturing an ecosystem where digital currency can be utilized as conveniently and efficiently as traditional forms of money.