Payments Giant Stripe Is Gearing Up To Make A Big Splash In The Booming Stablecoin Market

Stripe, a global payments platform, is building a new US dollar stablecoin product for companies outside the United States, the United Kingdom, and Europe. The product will be built using Bridge, the stablecoin payments platform Stripe acquired in October 2024 for $1.1 billion. Stripe Preparing To Test A New Stablecoin Product Stripe CEO Patrick Collison announced in a X post that the company has been planning a stablecoin payments product for nearly 10 years and is now opening it up to pilot users. The move gained traction after Stripe recently obtained regulatory approval to acquire the Bridge, a payments platform founded by former Coinbase exes Zach Abrams and Sean Yu. Bridge’s network offers an alternative to traditional banking rails like SWIFT for cross-border transactions. Stripe developer Jen Kim revealed that the stablecoin is “ready to start testing.” During that process, the company is soliciting customer feedback. Kim noted that the product targets clients outside the US, the European Union, and the UK. In a follow-up post, Kim claimed that within the first three months of offering stablecoin services, customers from over 90 countries paid with stablecoins via an invoice or checkout. Stablecoin Sector Is Experiencing Tremendous Growth Stripe has a long history with crypto. It was the first major payment processor to integrate Bitcoin payments back in 2014, though it pulled the plug in 2018, citing the top crypto’s slow transaction speeds and high fees. The payments firm began rebuilding its crypto team in 2021 as part of a renewed push into the space. Stripe’s stablecoin pilot project comes at a time when a wide variety of entities, ranging from crypto-native firms to TradFi banks, are making steps to grab a piece of the fast-growing sector. PayPal and Ripple have all launched their own U.S. dollar-pegged stablecoins in recent years. As of April 27, the stablecoin market cap stands at $239.11 billion, according to DefiLlama. Notably, Citi predicted in a recent report that stablecoins could be a “ChatGPT” moment for blockchain adoption in 2025. In its base case, the bank envisions the asset class potentially ballooning to $1.6 trillion by 2030 from the current valuation, bolstered by regulations being laid down globally and institutional adoption. In Citi’s more upbeat scenario, the market could rocket to an eye-popping $3.7 trillion.

Source: ZyCrypto