Stripe has recently announced a significant update to its platform, introducing Stablecoin Financial Accounts for businesses in over 100 countries. This new feature allows businesses to hold, receive, and send funds using stablecoins, operating similarly to traditional bank accounts but with the added benefits of cryptocurrency.
Here's a breakdown of the key aspects of this update:
* Global Reach: These stablecoin accounts are now available to businesses in more than 100 countries. The list of supported countries mainly includes emerging market regions but excludes those with specific cryptocurrency laws.
* Supported Stablecoins: Initially, the accounts will support two US dollar-pegged stablecoins:
* USDC: Issued by Circle.
* USDB: A new stablecoin issued by Bridge, a stablecoin orchestration firm recently acquired by Stripe. It's noted that USDB is currently a closed-loop stablecoin, not available for public sale.
* Functionality: Businesses can:
* Hold their account balances in stablecoins.
* Receive funds via both cryptocurrency transfers and traditional fiat rails (like ACH and SEPA).
* Send money globally using stablecoins.
* Transfer money between their stablecoin balance and external bank accounts or crypto wallets.
* Make payouts to others in USD (via ACH or wire) or in stablecoins over crypto rails.
* Benefits Highlighted by Stripe:
* Faster and cheaper international money movement: Stablecoins facilitate quicker and more cost-effective cross-border transactions.
* Stability in volatile currencies: Useful for businesses in regions with high inflation or unstable banking systems, allowing them to hold value in dollar-backed tokens.
* Simplified access to crypto without self-custody: Businesses don't need to manage their own cryptocurrency wallets or rely on exchanges to hold their assets, as Bridge (a Stripe company) acts as the custodian for the stablecoin balances.
* Integration with Visa: Stripe's recently acquired Bridge has partnered with Visa to enable the issuance of Visa cards linked to stablecoin wallets. This will allow businesses to spend their stablecoin balances at any merchant that accepts Visa, with Bridge facilitating the conversion to fiat at the point of sale.
* AI Integration: Alongside the stablecoin accounts, Stripe also announced a new AI foundation model for payments. This model, trained on a vast amount of transaction data, aims to improve fraud detection and payment authorization rates, working across Stripe's payment products.
This move by Stripe signifies a major step towards integrating stablecoins into mainstream financial activities for businesses globally, leveraging the benefits of blockchain technology for traditional financial operations.
