Stripe building Stablecoin to Challenge USDT, USDC, RLUSD

Stripe is now developing a new stablecoin product based on the US dollar, targeting businesses outside the US, UK, and Europe

Stripe, the major payment processor, is venturing into the stablecoin domain with a new product targeting businesses in countries outside the US, UK, and Europe.

The initiative comes amid a unilateral move to bolster the dollar’s global clout.

Its CEO Patrick Collison confirmed the product on X, opening the request for companies interested in beta testing it.

The announcement comes after Stripe recently received regulatory approval to purchase Bridge, a network that operates on a radically different model to banks and other corporations that use SWIFT for international wire transfers.

Founded in 2022 by Coinbase alumni Zach Abrams and Sean Yu, Bridge’s network is used by corporations to send and receive payments in multiple currencies.

Stripe has had a history with crypto, integrating Bitcoin (BTC) in 2014, becoming the first major payment processor to do so. However, the company dropped support due to long transfer times and high transaction fees.

Efforts in the crypto space led to Stripe rebuilding its crypto team starting in 2021. In recent years, they appear to have greatly increased that effort.

On the first day of rollout, consumers in more than 70 countries embraced the stablecoin payment capability that the company had enabled. Stripe and Coinbase partnered to provide fiat-to-crypto conversions.

According to Collison on X, Stripe has “wanted to build for around a decade” with its most recent cryptocurrency endeavor.

Stablecoins are digital currencies pegged to assets, such as fiat money, to maintain value. USD-backed stablecoins have garnered more federal attention in the US, with leaders like US Federal Reserve Chair Jerome Powell advocating for specific legislation.