In the US (the most valuable fiat-to-crypto market), onramp is about fraud. 

Specifically:

1. Stolen payment method fraud
2. "Friendly" regret-based (i.e. price goes down) fraud

It's different than e-commerce fraud since doesn't require a physical shipping address (you can use spoofed KYC and get the good you're purchasing if it's crypto).

You're also delivering the asset instantly and in a non-reversible way.

And then you have a chargeback risk 30+ days later.

It's a problem that requires a specific consumer data set and proprietary machine-learning model.

Can Stripe build one here? Yes. Does that happen quickly? No.

stripe just assembled the first stack that circumvents CEXes entirely

before embedded wallets, apps were at the mercy of external wallets

privy flipped the model. they empowered apps to own the relationship with users

but CEXes still provided the best onramp, and so the

Austin Marrazza

In the US (the most valuable fiat-to-crypto market), onramp is about fraud. 

Specifically:

1. Stolen payment method fraud
2. "Friendly" regret-based (i.e. price goes down) fraud

It's different than e-commerce fraud since doesn't require a physical shipping address (you can use spoofed KYC and get the good you're purchasing if it's crypto).

You're also delivering the asset instantly and in a non-reversible way.

And then you have a chargeback risk 30+ days later.

It's a problem that requires a specific consumer data set and proprietary machine-learning model.

Can Stripe build one here? Yes. Does that happen quickly? No.

https://x.com/realitywarp/status/1932907314937246128

How does Coinbase offer no KYC and 0% fees for USDC onramps? Is their fraud detection just that good?

when you say no kyc -- do they require a phone number?

Why do other onramp providers need ID, SSN, etc? Skill issue or Coinbase has something they don’t?

That’s a lot of information for underwriting.