US-based corporate card issuer Ramp has partnered with financial services company Stripe to offer a first-of-its-kind stablecoin-backed corporate cards. Both these companies want to ease cross-border transactions making it faster and cost effective.
Announcing their partnership, Ramp in its X post on May 8th said that their “stablecoin-backed cards will flip that reality, unlocking faster, reliable payments and built-in protection from currency volatility.”
The company also confirmed that these cards will be first tested in the Latin American region. The partners will expand availability to Europe, Africa, and Asia, they say
How will it work?
The company said that businesses can fund a wallet using local currency to convert it to stablecoins, or they can deposit stablecoins itself. This enables cardholders to then pay in their local fiat currency, and merchants can receive the same.
According to cryptonews.com, the companies will be combining Stripe’s stablecoin-backed cards and Ramp’s financial platform to boost business growth and commerce. The companies claim that it provides fast settlements for businesses, lower costs, built-in protection from currency volatility, and easy card issuance.
Founded in 2019, Ramp has over 30,000 customers across industries that use their services and they claim they deal with “tens of billions” in purchases annually. Stripe on the other hand is a powerful API that automates financial transactions and payments. It recently acquired stablecoin infrastructure firm Bridge for $1.1 billion
