The news: Stripe re-entered the digital currency space, launching a crypto tool kit of APIs and separately partnering with crypto exchange FTX, per a press release.
How we got here: Stripe was one of the first payments companies to support cryptos back in 2014, but the firm stopped four years later due to limited merchant and user adoption. It alluded to a return to crypto in October when it posted job openings for four engineers.
Its partner FTX has grown rapidly in recent years, helped by big money raises like a $400 million Series C in February. Earlier this week, it set up a European headquarters and new division to focus on trading in Europe and the Middle East.
Why it could work: Stripe stands to gain from crypto payments as digital currency ownership edges toward the mainstream.
The big takeaway: The timing of Stripe’s re-entry into digital assets is fortunate. The Biden administration signed an executive order on cryptocurrencies last week that signaled broader future oversight of the industry.
Stripe’s deal with FTX will help it diversify its business while capitalizing on FTX’s success and industry prowess. And its API tool kit opens the door for other companies looking to build or improve their digital asset-related products to create similar tie-ins.