Payment giant Stripe is diving headfirst into stablecoins, launching a USD-backed digital currency aimed at businesses beyond America’s borders. The move comes after nearly a decade of planning, according to CEO Patrick Collison, and follows the company’s recent $1.1 billion acquisition of Bridge, a stablecoin payments network.
Talk about perfect timing. With traditional banking systems showing their age, Stripe’s new stablecoin targets companies operating outside the US, UK, and Europe. It’s no coincidence that these regions often struggle with conventional banking access. The partnership with Coinbase for fiat-to-crypto conversions in June 2024 further strengthened their position in the market. The platform, built using Bridge’s technology, offers an alternative to the dinosaur that is SWIFT for cross-border transactions. The move promises to deliver peer-to-peer transactions without the need for traditional banking intermediaries.
Stripe’s stablecoin entry perfectly targets underserved markets, offering a modern alternative to aging banking systems for cross-border business.
This isn’t Stripe’s first crypto rodeo. Back in 2014, they were the first major payment processor to embrace Bitcoin – before dumping it due to those pesky network issues and sky-high fees. But like any tech company worth its salt, they pivoted. They rebuilt their blockchain team in 2021 and haven’t looked back since.
The numbers don’t lie. When Stripe launched stablecoin payment options in October 2024, businesses in 70 countries jumped on board – day one. Within three months, that number ballooned to over 90 countries. Not too shabby for a company that once ghosted crypto entirely.
Behind the scenes, former Coinbase executives Zach Abrams and Sean Yu, who co-founded Bridge in 2022, are now part of Stripe’s arsenal. Their expertise in stablecoin technology is proving invaluable as the company rolls out testing to pilot users.
The timing is interesting, considering Federal Reserve Chair Jerome Powell’s recent calls for clear stablecoin legislation in the U.S. But Stripe isn’t waiting around. They’re moving forward with their plans, inviting businesses to participate in early testing while regulatory discussions continue.
For companies in emerging markets looking to expand globally, Stripe’s new stablecoin might just be the answer they’ve been waiting for.
