Stripe Building First Stablecoin Product On Bridge

Stripe, a global payments platform, is building its first stablecoin financial product for companies based outside the United States, the United Kingdom, and Europe. The move could help further expand the footprint of the Dollar in global markets. The new stablecoin product will be powered by Bridge. In October 2024, after receiving regulatory approval, Stripe purchased the stablecoin payments infrastructure firm for $1.1 billion. Stripe Building New Stablecoin Product Stripe co-founder Jeff Weinstein and CEO Patrick Collison confirmed the project on X. Collison posted an invitation for companies interested in testing the solution, adding that the company had wanted to build such a product for over a decade. “We’ve wanted to build this product for around a decade, and it’s now happening.” The project began gaining traction after Stripe acquired stablecoin payments network Bridge. The company’s acquisition of Bridge for $1.1 billion remains the largest crypto-related merger to date. Bridge focuses on using stablecoins to move money, providing APIs to businesses allowing them to accept and move stablecoin payments across the globe while minimizing complexities. Developer Jen Kim stated that the new product is ready for testing and that Stripe is actively collecting user feedback. Kim also added that users in over 90 countries have begun using stablecoins to make payments through Stripe since the launch of Bridge’s services. Bridge competes with banks and other financial institutions using the SWIFT payment system. SWIFT is a global financial messaging network facilitating international wire transfers. A New Revenue Stream Industry insiders believe the new product could unlock a significant revenue stream for Stripe through earnings on reserves held in US assets like US Treasuries. Some estimations put the figure at $40 billion. Stripe co-founders Jeff Weinstein and Patrick Collison highlighted the growing use of stablecoins from corporate treasury and remittances to savings in unstable economies. They have also gained traction as an alternative payment mode in markets with low credit card access. Bridge integrates stablecoins, including USDT and USDC, into traditional financial systems, enabling cross-border payments and currency exchanges. The firm has gained traction through several partnerships across crypto and finance. Stripe gained prominence in crypto after introducing support for Bitcoin payments in 2014. However, the feature was discontinued in 2018 due to declining demand, long transaction times, high fees, and volatility. However, the firm reintroduced crypto payments this month with USDC payments on Ethereum, Solana, and Polygon. Stablecoins are cryptocurrencies that maintain stability by pegging their value to fiat currencies. Dollar-backed stablecoins have gained traction at the federal level, with Federal Reserve Chair Jerome Powell calling for dedicated legislation. According to data from DefiLlama, the stablecoin market cap sits at $237.5 billion as of April 25. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily