Bitstamp Partners with Stripe to expand its market presence outside the United States and push for mainstream crypto adoption.
In its advanced communication, the renowned payment service provider Stripe joined forces with Bitstamp to promote the accessibility of crypto assets in Europe. Under the partnership agreement, the two companies will expand their footprint in Europe.
Bitstamp Partners with Stripe
The two agreed to pursue opportunities in European countries to benefit the companies. Also, Stripe agreed to facilitate on-ramp and off-ramp services for Bitstamp users. This implies that Bitstamp users can buy and sell crypto through Stripe.
A review of the Stripe website demonstrates that the payment company has a customized widget that allows developers to convert their crypto and complete instant transaction settlement. However, this widget will not be available to European users.
Stripe offers two implementations for the on-ramp services compared to other payment firms. The first on-ramp is embeddable to other applications, allowing the developers to integrate crypto-purchasing widgets to their website using codes directly.
The second on-ramp service does not require a code and is hosted at Crypto.link.com. However, Stripe will support transactions of various crypto assets, including Bitcoin, Ethereum, Solana, Stellar, and USD Coin.
The fiat-to-crypto on-ramp service was introduced early last year to allow Stripe users to engage in crypto transactions. This feature addressed the cold start problem by enabling the customers to purchase crypto at their precise time and exchange it for other assets.
Significance of Bitstamp and Stripe Partnership
Beyond this, Stripe is considered a compliant payment processor with adequate security measures to protect consumers from financial losses. The payment company requires the user to comply with Know Your Customer (KYC) requirements and anti-money laundering rules.
Stripe allows users to make payments using debit and credit cards to meet the ever-changing customer demand.
On X, the Bitstamp team confirmed the partnership with Stripe. The crypto exchange will support Stripe in managing crypto-to-fiat transfers for BTC, ETH, SOL, and USDC transactions. This implies that Bitstamp will manage all fiat conversion to crypto for the customers.
Through the partnership, the crypto exchange will expand Bitstamp as a service product to banks and fintech companies in the region. The partnership aims to expand Bitstamp’s geographic presence outside the United States.
Bitstamp also seeks to gain a competitive edge over Coinbase, Kraken, and Binance through its partnership. The partnership coincides with Robinhood’s $200 million Bistamp acquisition.
Suitability of the European Crypto Market
The acquisition aligned with Robinhood’s global expansion plan of expanding its crypto product offering. Also, the acquisition deal aimed at positioning Robinhood at a considerable market position in the offshore market.
The Robinhood team believes that the acquisition will improve the company’s global competitiveness since Bistamp holds over 50 licenses and legally operates in the thriving crypto market. The acquisition is expected to be completed in Q1 of 2025 after the regulatory approval stage.
Notably, Bitstamp and Stripe’s expansion to Europe came at a time when crypto firms were flocking to the region due to clear regulations for digital assets. As the market for crypto asset (MiCA) rules take effect, fintech and crypto firms have shown growing interest in expanding to Europe.
The European crypto market’s attractiveness has encouraged mainstream crypto adoption in the region. In Germany, France, and Switzerland, crypto adoption has steadily increased to hedge in the global economic slowdown and inflation.
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