Coinbase Launches Stablecoin Payments Enable USDC Use, Post GENIUS Act

Coinbase has introduced a new stablecoin-based payment system called Coinbase Payments. The objective of this system is helping commerce platforms accept fast and low-cost payments at global level using USDC. It is a U.S. dollar-backed stablecoin. This new framework is going live just during the time, U.S. Senate passed a crucial stablecoin bill, the GENIUS Act, that gives stablecoins more legal clarity in the country. The timing has ignited major interest, and fear, across Wall Street.

What is Coinbase Payments?

Coinbase Payments is designed to make it easy for payment service providers (PSPs), online marketplaces, and commerce platforms to accept instant USDC payments. It works 24/7, doesn’t rely on complex blockchain systems, and is already live on Shopify, one of the world’s biggest e-commerce platforms.

Built on Base, organisation’s own blockchain network, this tool helps platforms avoid the need to set up their own blockchain tools. Instead, they can plug into Coinbase’s system and start accepting USDC instantly.

Source: Coinbase

Stablecoins Surge After GENIUS Act

The GENIUS Act, recently passed with 68 U.S. senators in favour, opens the way to wider acceptance of stablecoin. The act gives legal support to such stablecoins, which will make them more secure and reliable in the mind of business organisations, regulators, and investors.

After this bill was passed, the Chief Legal Officer of the Exchange Paul Grewal, posted on X (previously Twitter) and thanked lawmakers amid their support. He said this vote lets America be at the forefront of the rapidly-evolving world of digital finance.

The GENIUS Act is seen as a green light for companies to move away from old, expensive payment systems and toward faster, blockchain-based options like USDC and USDT.

Retail Giants Ditch Cards for Stablecoins?

Adding fuel to the buzz, big-box retailers such as Walmart and Amazon are already testing stablecoin payments to avoid the high card fees. This announcement sent the stock market into panic. Visa and Mastercard shares each fell close to 5% in a day.

Why the fear?

Stablecoins like USDC have decreased fees on transactions by 85%, allowing business organisations to avoid using credit card networks. That translates to massive savings for merchants, and massive losses for card giants. Visa and Mastercard stand to lose billions of dollars in revenue if more companies join the bandwagon.

Futures Market Also Embraces USDC

Coinbase is also expanding beyond consumer payments. Coinbase also announced a collaboration under which USDC can be used as collateral in the United States futures trading. This is another significant step toward integrating stablecoins as a central part of the broader financial system.

Conclusion

Stablecoin pushed by Coinbase could not have arrived at a better moment. With support from the law in the form of the GENIUS Act and increasing interest from large retailers, USDC and USDT both have a good chance to become a key payment instrument.

As the old approach is challenged, Wall Street is paying keen attention. And with Visa and Mastercard already under pressure, the revolution of stablecoins could be just starting.