Stripe has introduced a fiat-to-crypto on-ramp to resolve the “cold start problem” experienced by Web3 companies due to customers lacking cryptocurrency in their wallets for transactions. The new on-ramp, hosted by Stripe, will enable Web3 companies to offer US-based customers the capability to purchase cryptocurrency “at the precise moment they need it” without embedding any code in a website or app. Customers will be provided with a link to convert their fiat currency into cryptocurrency.
Stripe will perform compliance-related functions, including conversion and authorization optimization, identity verification, and fraud prevention, to ensure customers use Web3 services safely and quickly. The service incorporates built-in fraud detection and identity verification tools to help companies meet their Know Your Customer and compliance requirements. Brave, 1inch, and Lens Protocol are among the Web3 companies that have already integrated the on-ramp. Wallet Guard’s co-founder, Ohm Shah, has emphasized the significance of performing due diligence before investing in digital assets.
