Coinbase Unveils Open Source On-Chain Payments Protocol to Offer Instant Settlement for Merchants

San Francisco-based cryptocurrency exchange Coinbase has introduced an open-source On-Chain Payments Protocol to its Coinbase Commerce product.

The new protocol aims to enhance the payment experience for merchants and customers by providing instant settlement, low fees, and broad asset support, the exchange said in a Thursday announcement. 

Coinbase Commerce is a platform that helps merchants anywhere in the world accept cryptocurrency payments in a decentralized way.

However, the volatility of cryptocurrencies and the complexities of the payment process have been obstacles for both merchants and consumers. 

The updated Commerce product aims to address these challenges and provide a more seamless and user-friendly payment experience.

Coinbase’s On-Chain Payments Protocol to Simply Payments

Coinbase’s On-Chain Payments Protocol will act as a universal standard aimed to simplify and unify on-chain payments. By making the protocol open source, Coinbase encourages other payment processors and businesses to build upon it.The exchange said the new update offers major benefits for merchants. With a single setup and easy integration, merchants can facilitate on-chain transactions, enjoy volatility-free payments, benefit from low transaction fees, and receive instant settlement in hundreds of crypto assets. The streamlined onboarding process and out-of-the-box integrations with platforms like WooCommerce, Primer, and Jumpseller make it easy for merchants to accept their first payment in minutes.The On-Chain Payments Protocol also ensures that customers have a reliable and accurate payment experience. It supports multiple wallets and currencies, allowing customers to pay with their preferred wallet across the Base, Ethereum, and Polygon networks. 

On-Chain Payments Protocol Automatically Converts Assets

The On-Chain Payments Protocol automatically converts the customer’s chosen currency to USDC at a guaranteed rate, simplifying accounting and operations for merchants. Additionally, real-time transaction validation provides instant payment confirmation, eliminating any doubts or delays.Coinbase Commerce is also set to benefit Coinbase’s millions of verified users by enabling seamless checkout experiences for retail payments. The platform shares payment information directly with the user’s wallet, eliminating the need for manual data entry and reducing the potential for errors.Coinbase has been on a spree as of late, launching a series of products and services for crypto users. Just last week, the platform announced that it will add support for Solana (SOL) and Avalanche (AVAX) perpetual futures contracts. Prior to that, Coinbase announced the launch of its native Bitcoin and Ethereum futures contracts for US retail traders.Coinbase’s recent milestone achievements have not come without controversies. One such is its ongoing battle with the US Securities and Exchange Commission (SEC), which has accused the firm of not meeting the requirements of being a security trading entity.The platform has refuted the top regulatory body’s claims, stating that its activities do not fall under the agency’s legal purviews.