Coinbase has made its entrance into the retail payments sector with the introduction of Coinbase Payments—a new infrastructure intended to facilitate seamless transactions using the USDC stablecoin for merchants.
Key Highlights:
- Coinbase Payments enables merchants to accept USDC instantly, eliminating the need for blockchain infrastructure management.
- The platform includes a user-friendly checkout experience, smart contract escrow, and API-driven tools for merchants.
- With Shopify already integrated, Coinbase aims to establish USDC as a connection between traditional finance (TradFi) and on-chain commerce.
Launched on June 18, this platform empowers businesses to instantly accept USDC without the complexities of blockchain operations.
Built on Coinbase’s Ethereum layer-2 network, Base, the system is already operational with e-commerce leader Shopify.
Global Access for Merchants to USDC Payments
The integration enables merchants to receive quick, low-cost payments in Circle’s USDC from customers worldwide.
A significant advantage of this system is its 24/7 functionality, eliminating delays associated with traditional bank hours.
Coinbase Payments features a three-layer solution. The front end, termed the Stablecoin Checkout, accommodates various wallets including MetaMask, Phantom, and Coinbase Wallet.
This streamlined process removes the complexities of transaction fee calculations, a challenge frequently faced by newcomers to cryptocurrency.
Underlying this is the E-commerce Engine, which processes merchant functions such as subscriptions and refunds, converting them into standardized blockchain actions via API.
The final layer, the Commerce Payments Protocol, serves as an on-chain escrow and settlement framework.
Drawing inspiration from traditional e-commerce practices, the open-source protocol incorporates functionalities like delayed capture and programmable settlement.
Thanks to Base’s quick confirmation times, transactions can be settled as efficiently as credit card payments.
In practical terms, when a Shopify user opts for USDC during checkout, the Coinbase interface directs the transaction while Shopify authenticates it using the provided API.
$COIN JUST LAUNCHED COINBASE PAYMENTS
USDC stack for $SHOP & commerce platforms — instant, 24/7 settlement with no blockchain friction.$PYPL dipping on the news. pic.twitter.com/nwUKFB1bTk
— Shay Boloor (@StockSavvyShay) June 18, 2025
The funds remain secured in smart contract escrow until the order is fulfilled, minimizing chargeback risks and providing merchants immediate insight into payment statuses.
This innovative platform significantly reduces the technical hurdles historically associated with accepting digital currencies. Merchants are no longer required to handle private keys or develop custom crypto payment solutions.
The structure also includes fiat off-ramps, granting businesses hybrid finance solutions while ensuring on-chain transparency and auditability.
This development coincides with increasing institutional interest in stablecoins, which saw over $30 trillion settled through stablecoins in the past year, highlighting a growing interest in their use as a payment infrastructure.
Despite this momentum, the e-commerce sector has faced hurdles regarding infrastructure and regulatory compliance.
By integrating its tools into mainstream platforms like Shopify, Coinbase aims to position USDC as a vital linking mechanism between traditional and decentralized finance.
US Senate Approves GENIUS Act for Stablecoin Regulation
In a significant legislative move, the US Senate has passed the GENIUS Act with a vote of 68 to 30, marking the first federal legislation specifically aimed at regulating digital assets.
Bipartisan support ensured the bill’s approval, which outlines specific regulations for stablecoins, including reserve requirements and a collaborative regulatory effort between state and federal agencies.
A huge step forward. Read Stand With Crypto’s statement on today’s Senate vote to advance the GENIUS Act pic.twitter.com/AQFFS2f9Yc
— Stand With Crypto (@standwithcrypto) June 17, 2025
This legislation is perceived as a crucial milestone by leaders in the cryptocurrency sector, who assert that the ambiguity surrounding regulations has hindered stablecoin adoption in conventional finance.
The GENIUS Act comes at a time when the stablecoin market has experienced explosive growth, expanding from under $10 billion to $239 billion in just five years.
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