Stripe has invited companies outside of the United States, the UK, and the EU to participate in trials of its U.S. dollar-backed stablecoin.
Patrick Collison, CEO of Stripe, said the payments firm had been planning a stablecoin launch for over a decade. The company made an early foray into bitcoin payments around the same time, but the demands of processing crypto and digital assets led Stripe to step away from bitcoin shortly afterward.
However, Stripe has made crypto a priority over the past year. The company entered into a partnership with Coinbase, allowing users to receive payouts and convert fiat in stablecoins like Circle’s USDC and Pax Dollar.
While this was a significant step, there has long been speculation about when Stripe would issue a stablecoin of its own. Rival payments firm PayPal recently introduced its PYUSD stablecoin, and its established customer base and institutional connections helped the token quickly gain significant traction in the market.
Compliance-Grade, Enterprise-Ready
After the recent acquisition of stablecoin company Bridge, it became clear that Stripe had stablecoin designs of its own. The $1.1 billion deal was the largest purchase Stripe ever made, and one of the largest acquisitions the crypto industry has seen.
While it may seem like just another stablecoin in an already crowded market, there are clear advantages that Stripe brings to the table.
“Unlike crypto-native firms that build first and seek permission later, Stripe is ‘regulatory-first’ and that gives it a leg up,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “With regulatory approval of the Bridge acquisition, Stripe’s stablecoin product could offer the compliance-grade, enterprise-ready solution that banks, fintechs, and international businesses have been waiting for.”
The Real Prize
In addition to compliance benefits, Stripe aims to differentiate itself by targeting markets that have been previously underserved.
“Everyone’s talking about stablecoins in the U.S., but Stripe believes the real prize is outside the states,” Hugentobler said. “While competitors fight for domestic market share, Stripe is building liquidity rails across the Global South, Asia, and Latin America—where demand for dollar-stable value transfer is enormous but bank infrastructure is weak.”
Additionally, Stripe is likely hoping its stablecoin can help solve persistent cross-border payment issues like delays and fees.
“Stripe could lock up international business clients who need fast, cheap, and compliant payment options,” Hugentobler said. “Global companies are desperate for low-friction cross-border payment solutions. Existing payment options are expensive, slow, and often have currency exchange barriers. Stripe’s product is filling the gap.”
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