Paxos has launched a new platform called the Stablecoin Payments Platform, with Stripe as its first customer. This platform simplifies the process for businesses to accept stablecoins, which are cryptocurrencies maintaining a value equivalent to traditional currencies like the US dollar.
Paxos, renowned for its secure and regulated blockchain services, has partnered with Stripe, a leading payment processing company. Together, they streamline the use of stablecoins in transactions, merging Paxos’s stablecoin technology with Stripe’s reliable payment systems.
The platform allows businesses to accept payments in stablecoins, offering faster transactions and lower fees than traditional methods. It integrates seamlessly with existing business systems, simplifying the adoption of stablecoin payments.
Businesses benefit from quicker settlement, streamlined onboarding, and instant conversion between USD and USDP, PYUSD, and USDC stablecoins.
Ronak Daya, Head of Product at Paxos, believes stablecoins represent the future of payments and money transfers. According to Daya, as companies recognize the benefits of stablecoins—such as instant, secure, and cost-effective global transactions—their adoption will continue to increase.
Paxos’s new stablecoin payment platform equips businesses to efficiently accept payments, send money, and manage global transactions.
John Egan, Head of Crypto at Stripe, states that Stripe continually seeks ways to simplify and reduce the cost of payments for businesses worldwide. He emphasizes that partnering with Paxos enables Stripe to offer stablecoin payments via their Pay with Crypto service, facilitating digital payments from customers around the globe.
This platform launch follows a pivotal moment in July 2024 when the U.S. Securities and Exchange Commission (SEC) concluded its investigation into Paxos’s Binance USD (BUSD) stablecoin without pursuing legal action. Paxos specializes in digital currency, including Binance USD (BUSD).
In 2023, the U.S. government scrutinized BUSD, with the SEC warning Paxos about potential legal action, suggesting BUSD could be classified as a security. Subsequently, New York’s financial regulators instructed Paxos to cease issuing new BUSD.
However, in 2024, after a court case, the SEC opted not to take legal action. The court found insufficient evidence to classify BUSD as a security. Paxos welcomed this decision, believing it affirmed their stablecoin’s compliance with the law.
Earlier this year, Stripe announced plans to relaunch its crypto payment service, allowing users to pay with stablecoins starting this summer.
