Stripe announced a major expansion into the stablecoin ecosystem with the launch of Open Issuance, a developer-friendly platform described as a “stablecoin launchpad.” This tool allows businesses to create, mint, manage, and burn their own custom stablecoins with minimal effort—just a few lines of code.
The service is powered by Bridge, a stablecoin infrastructure provider Stripe acquired for $1.1 billion in October 2024, and integrates treasury management from partners like BlackRock, Fidelity Investments, and Superstate.
Businesses can customize reserves like balancing cash and treasuries, design reward systems tied to holdings, and ensure full interoperability across issuers. Early adopters include: CASH: An open-loop stablecoin from Phantom wallet.
Stripe positions Open Issuance as a white-label solution to capitalize on the stablecoin market’s projected growth from $300 billion today to $2 trillion by 2028, per U.S. Treasury estimates.
It enables firms to retain interest income from reserves minus a 0.5% fee while handling compliance and liquidity. Federal Charter and NY License To comply with upcoming U.S. stablecoin regulations under the GENIUS Act.
Stripe plans to apply for: A national trust charter from the Office of the Comptroller of the Currency (OCC), allowing federal oversight for stablecoin issuance. A trust license from the New York Department of Financial Services (NYDFS).
These steps ensure Stripe can continue operations post-legislation, similar to recent moves by competitors like Paxos. The applications are in preparation, with no filing dates announced yet. This builds on Stripe’s earlier 2025 stablecoin efforts, including Stablecoin Financial Accounts rolled out in May for 101 countries, supporting USDC storage and multi-currency balances.
Stripe’s entry intensifies competition in crypto-as-a-service, challenging platforms from Binance and Coinbase. By simplifying issuance, it lowers barriers for non-crypto natives, potentially accelerating stablecoin adoption in payments, remittances, and DeFi.
The timing aligns with a pro-crypto regulatory shift, making the U.S. a more attractive hub for innovation. Open Issuance lowers the technical and operational barriers for businesses to issue stablecoins, enabling non-crypto companies to integrate stablecoins into payments, remittances, or loyalty programs.
Building on Stripe’s existing Stablecoin Financial Accounts, Open Issuance’s interoperability and multi-currency support could make stablecoins a standard for cross-border payments, reducing reliance on traditional banking rails like SWIFT.
With the stablecoin market projected to grow from $300 billion to $2 trillion by 2028, Stripe’s platform positions it to capture a significant share, especially among SMBs and enterprises new to crypto.
Stripe’s entry into stablecoin issuance directly competes with crypto exchanges like Binance, Coinbase, and Kraken, as well as specialized issuers like Paxos and Circle. Its developer-friendly approach and existing merchant base give it a competitive edge.
By allowing businesses to retain interest income from stablecoin reserves, Stripe undermines traditional banking models that profit from holding customer funds. This could pressure banks to innovate or partner with crypto platforms.
The $1.1 billion acquisition of Bridge signals Stripe’s aggressive push into crypto infrastructure, potentially triggering further M&A activity as competitors seek to bolster their own offerings.
Applying for a national trust charter (OCC) and NYDFS trust license positions Stripe as a regulatory leader in the stablecoin space, aligning with the GENIUS Act’s requirements. This could set a precedent for other issuers to seek federal oversight, fostering a more unified U.S. regulatory framework.
Federal and New York licenses enhance Stripe’s credibility, reassuring businesses and consumers wary of crypto’s regulatory uncertainty. This could attract risk-averse enterprises to adopt stablecoins via Stripe’s platform.
As a major player, Stripe’s regulatory moves could influence U.S. stablecoin policy, especially given the pro-crypto shift under the current administration. Its involvement may push for clearer, innovation-friendly rules.
By enabling businesses to earn interest on stablecoin reserves minus Stripe’s 0.5% fee, Open Issuance democratizes access to yield typically reserved for banks or large issuers. This could empower smaller firms but may strain traditional financial institutions’ revenue models.
Partnerships with BlackRock, Fidelity, and Superstate for treasury management bridge decentralized finance (DeFi) with traditional finance (TradFi). This could normalize crypto assets in institutional portfolios, driving further mainstream acceptance.
Stablecoins issued via Open Issuance could lower transaction costs for businesses, especially for cross-border payments, challenging high-fee models of payment processors like Visa and Mastercard.
Open Issuance’s “few lines of code” model simplifies stablecoin creation, fostering innovation in use cases like tokenized rewards, micropayments, or decentralized lending. This could spur a wave of new applications in Web3 and beyond.
By ensuring stablecoins are interoperable across issuers, Stripe reduces fragmentation in the crypto ecosystem, making it easier for businesses to adopt and integrate multiple stablecoins.
The crowded stablecoin market may limit Stripe’s ability to differentiate, especially if rivals offer lower fees or more advanced features. As a high-profile platform, Stripe’s stablecoin infrastructure could be a target for cyberattacks, requiring robust security measures to protect reserves and user funds.
Stripe’s stablecoin charter application and Open Issuance launch position it as a pivotal player in the evolving crypto landscape. By blending regulatory foresight, technological innovation, and a merchant-friendly approach, Stripe could drive mass adoption of stablecoins while challenging both crypto and traditional finance incumbents.
However, success hinges on navigating regulatory hurdles, managing risks, and maintaining a competitive edge in a rapidly crowding market. This move signals a broader shift toward integrating crypto into mainstream commerce, with Stripe at the forefront.
Phantom Launches “Phantom Cash” Bridging Crypto and Everyday Payments
Meanwhile, Phantom—the popular Solana-based crypto wallet with over 15 million users—announced Phantom Cash, a new payments platform that evolves its wallet into a full-fledged “money app” for seamless crypto-fiat integration.
This launch coincides with the debut of CASH, a USD-pegged stablecoin designed specifically for consumer use, marking the first stablecoin issued via Stripe’s newly unveiled Open Issuance platform.
The move positions Phantom as a direct competitor to traditional fintech apps like Cash App and Venmo, but with on-chain efficiency and crypto-native features.
Phantom Cash builds on the existing Phantom mobile app, allowing users to handle both crypto and fiat in one place. Here’s a breakdown:Feature
Virtual and soon physical card for spending CASH anywhere Visa, Apple Pay, or Google Pay is accepted. Use crypto balances for online, app, or in-store purchases without bridges.
Earn yield on unspent balances held in CASH. Passive income on stable value, encouraging everyday holding. Buy/sell tokens directly in-app with fiat. Simplified entry/exit for new users, no external exchanges needed.
Upcoming Stripe network support for payments at millions of merchants. Real-world utility, like paying bills or shopping with stablecoins. CASH itself is a fully backed, open-loop stablecoin issued by Bridge Stripe’s stablecoin arm, with reserves managed by institutions like BlackRock and Fidelity.
It’s Solana-first for low fees and fast transactions but designed for broader adoption, addressing gaps in existing stablecoins like USDC or USDT that Phantom says “weren’t built for everyday life.”
Developers can now integrate CASH, earning rewards for originating supply. The Stablecoin Supercycle Heats Up this launch arrives amid explosive growth in stablecoins, with the market nearing $300 billion in valuation.
Competitors like Tether’s Plasma superapp, Cloudflare’s NET stablecoin, and Visa’s cross-border tools are vying for dominance, but Phantom’s focus on user-friendly UX could onboard millions more to crypto.
As Phantom CEO Brandon Millman noted, it’s a “turning point” toward a “global, crypto-first consumer finance platform.” Early reactions on X highlight its potential to “strike at Cash App & Venmo” by making on-chain payments effortless.
Phantom Cash’s integration of a stablecoin (CASH) with everyday payment tools like a Visa debit card, P2P transfers, and merchant support via Stripe lowers barriers for non-crypto users. This could accelerate mainstream adoption by making crypto as intuitive as Venmo or Cash App.
Crypto becomes a practical tool for daily transactions, not just speculation, shifting perceptions from niche to necessity. This could pressure traditional fintechs to integrate blockchain or risk losing market share.
With the stablecoin market nearing $300B, CASH enters a competitive field dominated by USDT and USDC. Its Solana-based low fees, yield on balances, and consumer focus differentiate it.
By leveraging Stripe’s infrastructure, Phantom Cash benefits from trusted reserve mmanagement like BlackRock, Fidelity and merchant networks, enhancing credibility and reach. CASH could capture significant market share if it delivers on speed and cost, potentially sparking a “stablecoin supercycle” where consumer-focused tokens outpace older models.
However, regulatory scrutiny on stablecoins could complicate growth. Phantom Cash’s global, low-fee P2P payments and crypto-backed debit card directly target fintech apps. Its ability to offer yield on balances is a unique edge traditional apps can’t match without crypto integration.
Established players may be forced to adopt blockchain or partner with crypto platforms to stay competitive. This could lead to a wave of fintech-crypto mergers or integrations, reshaping consumer finance.
Phantom’s push for developers to integrate CASH could drive DeFi and payment app innovation on Solana. Solana could solidify its lead over competitors like Ethereum or Layer-2s in consumer applications, attracting more projects and capital.
Stablecoins face increasing global regulation like U.S. clarity on stablecoin legislation, EU’s MiCA. Phantom’s partnership with Stripe and reputable reserve managers may mitigate risks, but compliance costs could rise.
Global P2P payments and low fees could empower underbanked populations, especially in regions with limited access to traditional banking. Phantom Cash could drive financial inclusion but must navigate a complex regulatory landscape. Missteps could lead to restrictions or bans in key markets.
Phantom Cash could redefine how crypto integrates with daily life, challenging fintech giants and boosting Solana’s ecosystem. Its success hinges on seamless execution, regulatory navigation, and user trust.
