Key Takeaways:
- Coinbase and MassPay are partnering to support stablecoin powered solutions to pay across borders for businesses around the world.
- Funding is available in USD and settlement is in USDC and payments can be made to recipients in 180 countries for enterprise clients.
- The integration is designed to combat payment delays, resolve pre funding issues, and make it easier for people to use stablecoins.
The most powerful applications for stablecoins so far are cross-border payments. The newly announced MassPay Momentum Sale gives an additional example of how blockchain payments are making significant strides into enterprise finance and providing an increasingly viable settlement method for businesses looking to avoid some of the lag times of international payments networks.
The partnership is bringing together Coinbase’s crypto service infrastructure with MassPay’s international payments network, to facilitate seamless cross-border transfers of USDC.
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Coinbase Expands Enterprise Stablecoin Infrastructure
Under the partnership, MassPay will integrate Coinbase’s payment APIs directly into its payout platform. This enables qualified customers of enterprises to pay for transactions in USD, crypto-to-USD conversions, and disbursements across the entire world in one process.
The system eliminates a lot of the complexity, having traditionally restricted stablecoin adoption by businesses. Companies can tap into services via Coinbase’s infrastructure, and retain use of MassPay for disbursements, without incurring costs in running separate custody firms, wallets, liquidity services, compliance departments and settlement services.
MassPay’s network already covers payment in 180 countries via a number of channels such as banking channels, mobile wallets, digital asset rails, and others.
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Stablecoins Target a Major Payments Problem
The inefficiency with regards international payouts is one of the least stitched up regions of global finance. Prefunding accounts in various jurisdictions is usually required for businesses to process payments. This prevents investment, leads to additional expenses and impedes settlement.
Coinbase and MassPay are making USDC a solution to these problems. Onchain settlement allows companies to settle without having to hold balances on a variety of payment corridors and almost instantaneously transfer value. Tax funds may be turned into and dispersed at will.
Flexible Payout Options for Businesses
One of the main aspects of the integration is payout flexibility. Payment can take alternative forms and all of them can be provided with a single funding event. Funds are sent to the recipient in USDC, other supported digital assets or local fiat currencies based on their preference and regional needs.
Such a strategy gives businesses the flexibility to choose to settle on blockchain without directly engaging with cryptocurrencies. The flexibility might reduce the hurdles companies face when incorporating stablecoin payments into their financial workflows.
USDC and Base at the Center of the Strategy
The deal also establishes Coinbase’s mission with regards to crypto payments. The company is maintaining its role as a means for settling global transactions by holding USDC, and will continue to rely on Base, its Ethereum L2 network, as an infrastructure tool for transactions to be processed with lower costs and higher speeds.
On its payment stack, Coinbase states it has gathered together several essential building blocks with a unified ecosystem: blockchain infrastructure capabilities via Base, stablecoin liquidity capabilities via USDC, custody capabilities via Coinbase Prime, and enterprise-grade compliance tools.
