E-commerce giant Shopify (SHOP) is bringing stablecoin payments to its merchants over Base, crypto exchange Coinbase (COIN)'s Ethereum layer-2 network, the companies said on Thursday.

The integration is set to roll out on June 12 to a limited group of early access merchants, with broader availability expected later this year

E-commerce behemoth Shopify (NYSE:SHOP) is set to introduce stablecoin payments to its merchants via Base, an Ethereum layer-2 network from cryptocurrency exchange Coinbase (NASDAQ:COIN), the companies announced on Thursday.

The integration, rolling out on June 12 to a limited group of early access merchants, will later this year expand to all merchants utilizing Shopify Payments, they said.

Once the rollout is complete, merchants will be able to accept payments of Circle's (NYSE:CRCL) USDC token on-chain while receiving local currency settlements without incurring foreign transaction fees. Shopify plans to give 1% cash back to customers who pay with USDC- a feature launching later in the year.

Stablecoins, digital tokens pegged to the value of a real-world asset, are being used for a wider range of purposes than simply allowing traders to move funds between cryptocurrencies without needing to convert to fiat currency. Usage is exploding, with a 54% growth in supply year-over-year, and increased usage by companies such as PayPal (NASDAQ:PYPL) and Grab (NASDAQ:GRAB) for payments and international remittances.

The initiative aims to streamline global commerce with crypto-native infrastructure, lowering costs and boosting efficiency, and is underpinned by a new open-source payments protocol jointly developed by Coinbase and Shopify.

The smart contract and commerce payments protocol supports standard features such as delayed capture, tax calculation and refund processing, and is integrated directly into merchants’ existing order fulfillment systems, the companies said.

Shopify selected Base for its low-cost, high-speed, and secure transaction environment, aiming to help bring crypto payments into the mainstream retail experience.