Stripe Launches Open Issuance, Simplifying Stablecoin Creation
Stripe, the global technology company, has introduced Open Issuance, a new service that simplifies the process of creating and managing stablecoins. Powered by Bridge, a stablecoin infrastructure company acquired by Stripe for $1.1 billion, Open Issuance enables businesses to mint and control stablecoins with minimal coding effort.
The surge in interest in stablecoins, which reached almost $300 billion in July 2024 under the crypto-friendly U.S. President Donald Trump's administration, has inspired Stripe's new service. Open Issuance aims to minimize the hurdles associated with building a stablecoin internally, such as compliance, liquidity, and reserve management issues.
Businesses can customize their reserves, choose partners, and decide the ratio between cash and treasuries using Open Issuance. They can launch a new stablecoin in just a few days, with the reserves balanced between government bonds and cash. Asset management giants like BlackRock, Fidelity Investments, and Superstate will handle the treasuries behind the reserves, while Lead Bank will hold the cash to provide liquidity.
Stripe's Open Issuance is set to revolutionize the stablecoin news, making it easier for businesses to launch their own stablecoins. With the market expected to reach $2 trillion by 2028, according to the U.S. Treasury, Open Issuance is poised to play a significant role in shaping the future of stablecoins.
