"Last October, the payments giant Stripe announced a blockbuster $1.1 billion acquisition of Bridge, a little-known startup focused on the dollar-backed cryptocurrencies known as stablecoins. Long a feature of the insular world of blockchain diehards, the technology had yet to break into Silicon Valley. But Stripe's acquisition, alongside the thawing regulatory environment under the Trump administration, has catapulted stablecoins into the mainstream."
"The new offering, announced on Tuesday, is called open issuance and will allow businesses to launch and manage their own stablecoins, including capturing the valuable yield earned off their reserves. Those reserves, typically consisting of U.S. Treasury bills and bank deposits, earn interest and ensure a stablecoin maintains a 1:1 peg to real-world dollars. Popular stablecoins such as Circle's USDC and Tether don't pass on the earnings to holders."
Stripe acquired Bridge for $1.1 billion and is integrating stablecoin capability into its core payments business through a product called open issuance. The offering enables businesses to launch and manage dollar-backed stablecoins and to capture the yield generated by reserves held in U.S. Treasury bills and bank deposits, which preserve a 1:1 peg. Existing popular stablecoins do not pass reserve earnings to holders. Early open issuance adopters are blockchain firms, but the product could broaden stablecoin use among mainstream companies and alter global money movement and storage by enabling near-instantaneous, low-fee transactions.
Read at Fortune Crypto
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