Stripe CEO Patrick Collison Announces New Stablecoin-Based Payments Product

This follows Stripe’s $1.1 billion acquisition of Bridge, a stablecoin platform, in October 2024.

Stripe, the payments giant, is expanding its cryptocurrency operations with a new stablecoin-based payments product targeting companies outside the United States, United Kingdom, and European Union.

The announcement was made by Stripe CEO Patrick Collison on X (formerly Twitter). Collison mentioned that this initiative, now entering a testing phase, has been in development for nearly a decade.

The product leverages Bridge’s infrastructure, which Stripe acquired for $1.1 billion in October, to streamline cross-border transactions. Stablecoins, which maintain a stable value pegged to another asset, are seen as a key area for improving global payment efficiency.

Major stablecoins like Tether’s USDT and USD Coin (USDC) are already widely used in the cryptocurrency market, with USDT holding the largest market share due to its early dominance, as of April 2025.

Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency (e.g., US dollar), a basket of assets, or other stable benchmarks. Unlike volatile cryptocurrencies like Bitcoin, which can experience rapid price fluctuations, stablecoins aim to minimize these changes, making them more suitable for payments, remittances, and as a store of value in digital transactions.

Most stablecoins are pegged 1:1 to assets like the US dollar (e.g., 1 USDC = $1). This stability is maintained through:

* Backed by reserves of fiat currency or cash equivalents (e.g., USDC, USDT).

* Over-collateralized by other cryptocurrencies (e.g., DAI).

* Use algorithms to adjust supply and demand to stabilize value (e.g., TerraUSD before its collapse).

Stablecoins can be used to:

* Facilitate fast, low-cost cross-border transactions (e.g., Stripe’s new product).

* DeFi: Serve as a stable medium in decentralized finance for lending, trading, and liquidity pools.

* Reduce fees and delays in international money transfers.

* Act as a hedge against crypto volatility or unstable local currencies.

Key takeaways:

* Stripe’s initiative follows its $1.1 billion acquisition of Bridge and signals further integration of crypto into mainstream platforms.

* Focusing on non-US/UK/EU markets, likely targeting regions with high remittance needs and less developed banking systems.

* Could accelerate adoption of stablecoins for e-commerce and cross-border payments.

* Might pressure competitors like PayPal and Square to expand their crypto offerings.

* Also, an interesting development to watch: How will Stripe influence regulatory discussions as major players push for clearer frameworks.

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