Stripe Expands Crypto Buying to EU Customers

Crypto Buying Features for Stripe Merchants

Stripe, a leading financial services provider, has recently broadened its crypto services within the European Union. This move allows customers in the EU to purchase a variety of cryptocurrencies, including Bitcoin and Ether, using their credit or debit cards issued by Stripe. The expansion aims to make cryptocurrency transactions more accessible and straightforward for its European users.

Accordingly, Stripe introduced a new feature that online vendors can incorporate into their websites to facilitate these transactions. This feature, a simple widget, handles all aspects of the transaction process, including charges, disputes, and compliance with Know Your Customer (KYC) regulations.

John Egan, who leads the crypto division at Stripe, emphasized that this development allows crypto companies to offer their European customers a quick and easy way to buy cryptocurrencies. Furthermore, businesses can reach a broader audience by integrating Stripe’s tools for conversion optimization, identity verification, and fraud prevention.

This expansion into the European market follows a significant financial development for Stripe. On July 15, Sequoia Capital, a prominent Silicon Valley venture capital firm, acquired $861 million in private shares from Stripe investors. This investment boosted Stripe’s valuation to $70 billion, highlighting strong investor confidence in the company’s growth potential.

The European Crypto Market

Europe has emerged as a significant player in the global cryptocurrency market, accounting for over 37% of global transaction value. The region, known for its proactive approach to cryptocurrency regulation, implemented its first set of these regulations, which focused on stablecoins, last month.

Further regulations are expected to be implemented by December 2024. These regulations aim to help lawmakers better understand financial technology and provide a structured framework for the industry.

Stripe’s dual headquarters in San Francisco and Dublin positions it well to take advantage of these regulatory developments. Dublin, as a member of the EU, boasts a high per-capita rate of cryptocurrency ownership, making it an ideal location for Stripe’s European operations.

Tokenized US Treasuries to Hit $3 Billion by 2024

Meanwhile, the rapid advancement of tokenization in the financial sector will surge further soon, with tokenized US treasuries projected to reach a market capitalization of $3 billion by the end of 2024. This milestone reflects the growing acceptance and integration of blockchain technology in traditional financial markets.

Tokenized assets represent a new frontier in financial innovation, allowing traditional assets like US treasuries to be digitized and traded on blockchain platforms. This process not only enhances the liquidity and accessibility of these assets but also introduces a new level of transparency and efficiency in their management.

Players Fueling the Tokenization Boom

Tom Wan, a research strategist at 21.co, stated that the surge in tokenized US treasuries is partly due to the strategic initiatives of major financial players like Securitize and BlackRock. These companies are developing and offering products that facilitate the tokenization of US treasuries, thereby expanding the market to attract more investors.

The impact of these initiatives is already evident. For instance, BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, has quickly become the largest tokenized treasury fund.

In six weeks, BUIDL amassed over $375 million in market capitalization, surpassing Franklin Templeton’s fund, and currently holds a market share of 28.8%. This rapid growth showcases the strong demand and trust in tokenized treasury products.

Wan emphasized that Securitize and BlackRock’s products offer a unique blend of traditional financial security with the innovative advantages of blockchain technology.

Prospects of Tokenization

Meanwhile, the potential for tokenization extends beyond US treasuries. According to the Global Financial Markets Association (GFMA) and Boston Consulting Group, the global value of tokenized illiquid assets is expected to reach $16 trillion by 2030.

Even more conservative estimates from Citigroup suggest that investments in tokenized digital securities could reach $5 trillion by the same year. Hence, it is no surprise that Goldman Sachs is preparing to launch three new tokenization products later this year.