Armstrong touts sub-cent stablecoin transfers as risks draw scrutiny

Armstrong’s post described the technology’s existing uses; it did not announce a new Coinbase product, supported market or fee change. He did not identify a blockchain or payment provider, or say whether the sub-cent figure covered the costs of buying stablecoins, converting them to local currency or withdrawing funds.

Coinbase’s Base network says its payment infrastructure supports stablecoin settlement at any time, with potential uses including payroll, remittances, merchant payments and accounts holding token balances. Base outlines a four-step process: fund an account, convert money into stablecoins, settle the transfer on the network, then deliver the tokens to a recipient or cash them out through a supported service.

Nium announced an integration with Coinbase in April. Nium said its clients could send and receive stablecoins and convert them into traditional currencies for payouts. Coinbase provides payment infrastructure, liquidity, wallets and custody, while Nium’s network serves more than 190 countries, according to the company. The service is aimed at banks, fintech firms and enterprises.

Public ledgers and issuer controls

An account called 0xAye acknowledged the speed and cost benefits but questioned the privacy of transparent blockchains. Ethereum’s documentation says ledger activity is public and that addresses offer pseudonymity, not guaranteed anonymity; transaction patterns can reveal sensitive information and potentially identify users. The post also promoted Seismic, a privacy-focused project.

Polygon said a feature introduced through Hinkal in May allows private USDC and USDT transfers, hiding the sender, recipient and amount from public view. Polygon said transactions are screened before execution, with the feature designed to combine privacy with compliance and audit capabilities.

Another response called for decentralized, permissionless stablecoins and criticized USDT’s issuer for being able to freeze assets. Tether’s policy, announced in December 2023, covers wallets linked to people on the U.S. Treasury’s Office of Foreign Assets Control sanctions list and extends controls to secondary-market activity. Circle’s USDC terms also reserve the right to block transfers involving certain addresses over suspected illegal activity, violations of its terms or valid government orders. Circle says those terms apply to USDC holders who do not have a Circle Mint account.

Coinbase has also pursued merchant payments through a PPRO partnership announced May 27. The company said eligible U.S. merchants could accept stablecoins through their existing payment provider and dashboard, with payments from hundreds of wallets, no gas fees for buyers and round-the-clock settlement for merchants. Coinbase said the United States was the launch market, with expansion planned elsewhere.