Coinbase, Moov to bring stablecoin payment infrastructure to community banks and credit unions

Coinbase and payments platform Moov have joined forces to provide stablecoin services to community banks. The collaboration, disclosed on September 10, intends to incorporate stablecoin acceptance, settlement, and real-time funding directly into the banks' existing systems. Ryan VanGrack, vice chair and head of corporate affairs at Coinbase, highlighted the growing use of digital assets by community banks' customers.

Through the partnership with Moov, Coinbase will supply the necessary regulated infrastructure to enable banks to offer these services, all while staying within their existing systems.

Moov will integrate Coinbase’s stablecoin payments infrastructure into its platform, allowing financial institutions to introduce stablecoin capabilities without the need for a separate crypto technology stack. This infrastructure will support various aspects of stablecoin transactions, including consumer payments, merchant acceptance, settlement, and payouts. For business and merchant payments, Moov will utilize Coinbase’s fully transparent custodial accounts.

According to research by PYMNTS Intelligence, credit union members are largely unaware of stablecoins, with many consumers combining digital assets and other cryptocurrencies in their minds. The Wallet Effect report discovered that 31% of millennials expressed strong interest in using cryptocurrency for payments, while 28% showed the same interest in stablecoins.

In contrast, 94% of baby boomers and seniors showed little to no interest in stablecoin payments, compared to 92% for cryptocurrency overall. The report suggests that stablecoins have not developed a distinct identity among most consumers due to their limited familiarity, leading to lingering concerns about volatility.