Stripe introduces automated USDC subscription payments via smart contracts on Polygon and Base blockchains, while its Bridge subsidiary seeks federal banking oversight from the OCC.
By Zoran Spirkovski
Editor Marco T. Lanz
Updated
2 mins read
Financial technology company Stripe announced on Oct. 14 that it has introduced recurring subscription payments using USD Coin USDC $1.00 24h volatility: 0.0% Market cap: $76.12 B Vol. 24h: $16.04 B for businesses in the United States. The service, which will initially run on the Polygon and Base blockchains, is designed to streamline payments for companies with recurring revenue models, such as AI platforms and other Web3 services.
The new feature, according to the announcement, utilizes a smart contract that lets customers save a crypto wallet and authorize it for recurring debits, removing the need to manually sign every transaction. While this aims to simplify user experience, the security of such a mechanism will be under scrutiny, pending audits and evaluations from independent security firms. Coinspeaker has reached out to Stripe for comment on the auditing process and security measures for the new smart contracts.
As part of a broader strategy, Stripe is also pursuing federal regulatory oversight. Its subsidiary, Bridge, has applied for a national bank trust charter with the US Office of the Comptroller of the Currency (OCC). This move places Stripe alongside other major industry players like Circle, Ripple, and Paxos, all seeking to operate within a federally regulated framework in the rapidly growing stablecoin sector.
This move to simplify subscription payments is the latest in a series of initiatives aimed at building a comprehensive stablecoin ecosystem. At its New York showcase on Sept. 30, Stripe announced “Open Issuance,” a platform powered by Bridge that allows any business to launch its own stablecoin. This service is already being used by companies to create stablecoins issued by Bridge.
Stripe has a history of providing foundational financial tools for the crypto industry. The company’s focus on creating developer-friendly products has made it a key partner for firms launching innovative financial services. By offering robust APIs and platforms like Stripe’s issuing infrastructure, the company enables others to build and scale complex products, such as crypto rewards credit cards, without managing the underlying payment complexities themselves.
The expansion into recurring payments comes as the stablecoin market shows significant growth. According to data from RWA.xyz, the total market cap for stablecoins now stands at over $293 billion, with monthly transfer volumes hitting $3.7 trillion. With over 29 million monthly active addresses, Stripe’s multi-faceted approach positions it to capture a meaningful share of this expanding digital economy.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
As a Web3 marketing strategist and former CMO of DuckDAO, Zoran Spirkovski translates complex crypto concepts into compelling narratives that drive growth. With a background in crypto journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
