Crypto exchange Coinbase has introduced an on-chain payment protocol as part of an update to Coinbase Commerce, a platform that helps merchants across the world accept cryptocurrencies as payment.
In a blog post on Thursday, Coinbase said the new protocol would be crucial to addressing the volatility in cryptocurrencies, which poses a challenge to merchants that use the product.
Setting a new standard for onchain payments
Introducing the updated Coinbase Commerce pic.twitter.com/bX2MikoLht
— Coinbase Cloud 🛡️📞 (@CoinbaseCloud) November 16, 2023
The on-chain payment protocol would be a universal standard developed by Coinbase to simplify on-chain payments and tackle common issues with crypto transactions. Additionally, the protocol would be fully open source so that other payment processes can build on top of it.
For merchants, it would mean volatility-free conversions to USDC at a guaranteed rate and the ability for their customers to pay with their preferred wallet and currency across the Ethereum, Polyon and Base networks.
Meanwhile, customers would receive instant payment confirmation with real-time transaction validation.
“At Coinbase we believe that onchain is the new online. Just like the internet broke down barriers, democratized access to information and made knowledge universally available, we believe crypto is doing the same with broader access to financial services and commerce,” said Coinbase’s product team in the blog.
Earlier this month, the firm reported quarterly earnings that came in ahead of analyst expectations. The exchange recorded $674.1 million in total revenue for the quarter despite a considerable drop in trading volume over the same period.