Stripe is developing a new product based on stablecoins, leveraging Bridge, a stablecoin services unit acquired in October 2024 for US$1.1 billion. The product is mainly aimed at users outside the US, EU, and UK.

According to Stripe developer Jen Kim, over 90 countries have already used stablecoins for payments through invoices or checkout within the first three months.

Stripe CEO Patrick Collison announced that the company has been planning the product for a decade and is now entering the testing phase, inviting customer feedback.

Bridge provides APIs to facilitate global transactions using stablecoins. This acquisition marked the largest crypto-related merger to date.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Emerging markets driving stablecoin adoption beyond regulated jurisdictions

Stripe’s focus on markets outside the US, EU, and UK aligns with where stablecoins are seeing the strongest organic adoption today.

In Brazil alone, stablecoins accounted for 80% of cryptocurrency transactions in 2024, with USDT transactions reaching $55 billion and constituting 70% of exchange outflows 1.

The dramatic cost advantage explains this trend. Sending USDC on Base costs under $0.01 compared to traditional wire transfers at approximately $44 1.

This cost efficiency creates particular value in emerging markets where traditional banking infrastructure is less developed or where local currencies face instability.

Companies like Stripe can leverage these established usage patterns in regions where stablecoins already solve real problems for businesses and consumers.

2️⃣ Regulatory arbitrage shapes strategic stablecoin rollout geography

Stripe’s decision to avoid the US, EU, and UK markets initially reflects the complex regulatory environment for stablecoins in these jurisdictions.

The EU’s Markets in Crypto-Assets Regulation (MiCA) imposes strict requirements on stablecoin issuers, including reserve management, audits, and holding portions of reserves within the EU 23.

Meanwhile, the UK is still developing its regulatory framework with consultations expected in 2025, creating regulatory uncertainty 4.

Recent Stripe developments