Blockchain payment services provider BitPay has announced that it adding support for stablecoin payments for merchants and consumers.
According to a press release, Bitpay has confirmed the addition of three stablecoins to its list of supported tokens. The stablecoins include Circle’s USD coin (USDC), the Gemini dollar (GUSD) and Paxos Standard token (PAX), all pegged to the U.S. dollar.
Apart from the newest addition, BitPay also allows payments in Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH). The rollout brings the total number of available tokens up to six. Notably absent from BitPay’s list of supported tokens is Tether (USDT), the stablecoin with by far the biggest trading volumes.
Following the announcement, CEO Stephan Pair stated in the press release:
“Accepting or paying with stablecoins opens up new possibilities for global businesses that require the stability of the dollar but the security and efficiency of blockchain payments.”
The new service allows BitPay’s over 30,000 merchants, including Microsoft, to accept payments in the stablecoins. In addition to that, BitPay’s wallet users as well as its prepaid cardholders now have the opportunity to spend USDC, GUSD and PAX at all points of supporting merchants.
“Businesses can invoice international customers without the need for costly, complicated cross-border wire transfers. Customers can send and receive payments using fast, efficient, and volatility free dollar-pegged stablecoins,” added Pair.
Additionally, the wallet will provide a full stack of usual operations such as controlling, managing and storing the stablecoins’ private keys.
As for the company’s decision to support stablecoins, it claimed that three stablecoins had gained momentum in recent years. At the same time, stablecoins record their transactions on an immutable public ledger, therefore they work similarly to classic cryptocurrencies.
In the meantime, Gemini’s managing director of financial operations – Joshua Rawlins – asserted that pairing of crypto payment acceptance with a stablecoin like Gemini dollar, is powerful as it combines the creditworthiness and price stability of the U.S. dollar with blockchain technology.
Rawlins further stated that merchants benefit from faster, cheaper, and fraud-resistant payment settlement, whilst consumers benefit from the ease of using cryptocurrency without worrying about price fluctuations.
Meanwhile, since its launch in 2011, BitPay processed over $1 billion in payments last year from global merchants. The firm is backed by notable investors, having raised over $70 million in funding from Peter Thiel’s Founders Fund, Nimble Ventures, and Virgin Group, amongst others.