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Stripe Unveils ‘Open Issuance’ to Let Businesses Launch Their Own Stablecoins
- Payment company, Stripe, has launched Open Issuance, a new platform designed to help businesses launch and manage their own stablecoins.
- Open Issuance is powered by Bridge, the stablecoin platform Stripe acquired in February for US$1.1 billion.
- The first stablecoin to launch on the platform is CASH from crypto wallet provider, Phantom.
Payments giant, Stripe, has launched a new platform to allow businesses to issue their own stablecoin in just a matter of days, using “only a few lines of code.”
The new platform, known as Open Issuance, will give issuers access to a wide range of customisation options and coin management tools, including the ability to select supported blockchains, supported smart contract functionality, and the mix of reserves backing the coin.
Stripe’s co-founder, Patrick Collison, said one of the most important features of the new platform was the ability for issuers to generate a yield from their stablecoin, which they can then choose to use to incentivise their customers.
Most importantly, we believe that the equilibrium market structure will (and should) involve much more yield sharing than is the case today. As such, Open Issuance helps anyone monetize stablecoins. There is a small platform fee (starting at 50 bps); all yield above that flows to the stablecoin creator.
Patrick Collison, Stripe co-founder Open Issuance is powered by Bridge, the blockchain-based stablecoin platform acquired by Stripe in February for US$1.1 billion (AU$1.6b).
“With the advent of stablecoins and AI, we’re at the dawn of a new online economy,” Will Gaybrick, Stripe’s President of technology and business, said. “We’re relentlessly focused on channeling its many opportunities to help our customers grow.”
The first stablecoin on the platform has already been launched: crypto wallet Phantom released its CASH stablecoin. Stripe said other stablecoins previously launched on Bridge — including Hyperliquid’s native stablecoin USDH — would migrate to the new platform.
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Simplified Management of Stablecoins
Head of Crypto at Bridge, Aadil Mamujee, said Open Issuance would simplify the process of launching a stablecoin by handling “reserve management, security, liquidity, and GENIUS-ready compliance.” Businesses launching stablecoins on Open Issuance can enable their coin to be interoperable with others launched on the platform.
“This means businesses can customize their stablecoin to fit their needs without building liquidity all on their own, while end customers can swap easily,” Mamujee said.
Treasuries backing the stablecoins launched through Open Issuance will be held by asset management firms BlackRock, Fidelity Investments and Superstate, with cash being held by Lead Bank.
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“With Open Issuance, businesses can build on top of stablecoins that they customize and control, so that the benefits of this important technology flow directly to the people and businesses using them,” Bridge’s co-founder and CEO, Zach Abrams, said.
Alongside the launch of Open Issuance, Stripe also launched the capability for businesses to accept recurring stablecoin payments through its Optimized Checkout Suite and businesses with Financial Accounts to hold stablecoins and convert them to and from fiat.
Stripe is also reportedly pursuing a US federal banking charter in order to comply with new stablecoin legislation when it comes into effect.
Author
Jody McDonald
Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.
