Zach Abrams, co-founder of stablecoin infrastructure company Bridge, says the company’s biggest surprise after launching was how quickly demand emerged outside the United States.
Abrams initially expected Bridge to build primarily for the American market.
Instead, customers from Latin America, Europe and Africa became an increasingly important part of the company’s business, revealing strong international demand for faster and cheaper ways to move money across borders.
Unexpected Demand Emerged in Emerging Markets
Bridge was founded in San Francisco in 2021 by Abrams and Sean Yu, who serves as the company’s chief technology officer.
The founders believed stablecoins could eventually become a mainstream payment technology because digital tokens can move money more quickly and at a lower cost than many traditional payment systems.
Their early customers, however, quickly demonstrated that the opportunity was much larger than the founders had anticipated.
Among the first use cases was infrastructure for cross-border payments between the United States and Colombia, along with systems designed to make payouts to countries including Venezuela and the Philippines.
For Abrams, the experience highlighted a major gap in traditional financial infrastructure, particularly in markets where sending money internationally can be expensive, slow or difficult.
Latin America Became a Key Growth Market
Latin America emerged as one of the strongest examples of where stablecoins could solve real-world payment problems.
The region’s significant cross-border commercial activity, combined with an expanding crypto ecosystem, created favorable conditions for stablecoin adoption.
Brazil, in particular, has become an important market because businesses and individuals frequently interact with international financial systems.
Abrams believes this pattern could eventually be replicated in parts of Asia, where economies are also heavily connected to international trade.
Stablecoins Are Still Overwhelmingly Dollar-Based
Despite the international demand for stablecoin technology, the industry remains heavily concentrated around the U.S. dollar.
Dollar-denominated stablecoins currently account for more than 95% of stablecoin transactions, a level of dominance that has raised concerns among governments outside the United States.
The concern is that widespread adoption of dollar-backed digital currencies could strengthen the dollar’s existing influence over international commerce and financial flows.
Abrams, however, believes the dominance of dollar stablecoins may have more to do with the sector’s early stage than with a permanent preference for the U.S. currency.
Abrams Sees a Future for Tokenized Local Currencies
According to Abrams, the stablecoin market could eventually become much more diverse as financial assets and currencies are increasingly represented digitally.
He expects businesses to want access to stablecoins denominated in the currencies they already use in their domestic operations.
A Singapore-based company, for example, could eventually hold tokenized Singapore dollars before converting some of those assets into U.S. Treasuries or other investments designed to generate returns.
That model could allow companies to maintain exposure to their local currency while accessing digital investment opportunities through tokenized financial infrastructure.
Bridge Is Expanding Beyond the Dollar
Bridge has already begun moving in that direction.
The company currently supports tokenized euros, Mexican pesos and British pounds, while Brazilian real stablecoins are expected to become available soon.
Singapore’s currency is not yet supported, but Abrams sees markets such as Singapore and Hong Kong as potentially important parts of the next stage of stablecoin development.
His broader argument is that tokenized local currencies will become increasingly necessary as more parts of the financial system move onto digital infrastructure.
Stripe Acquisition Accelerated Bridge’s Ambitions
Bridge’s rapid expansion helped attract major venture capital investors, including Sequoia and Haun Ventures.
By 2024, the company was processing payments at an annualized volume of more than $5 billion and had raised $58 million from investors.
Stripe acquired Bridge in 2024 for $1.1 billion, making it Stripe’s largest acquisition at the time.
The acquisition gave Bridge access to the resources of one of the world’s leading online payments companies while allowing its technology to remain focused on stablecoins and digital payment infrastructure.
One notable customer is SpaceX, which uses Bridge’s technology to move Starlink earnings generated overseas back to the United States.
Stablecoin infrastructure has also gained traction in emerging and rural markets, where traditional financial providers can be difficult to access.
Bridge Wants to Simplify the Tokenized Economy
Abrams now sees Bridge playing a role similar to the one Stripe played in the development of online payments.
Rather than forcing businesses to navigate a complicated collection of currencies, blockchains, payment networks and tokenized assets independently, Bridge aims to operate as a layer that hides much of that complexity.
The company’s ambition is to provide businesses with a single infrastructure platform through which they can interact with an increasingly fragmented tokenized financial system.
Abrams believes that complexity will grow as more currencies and financial assets become available on digital networks, creating demand for companies capable of connecting the different pieces.
Asia Could Become the Next Major Battleground
Abrams is particularly optimistic about Asia, although he acknowledges that adoption there remains behind the United States.
Singapore and Hong Kong have been developing regulatory frameworks for stablecoins, while China and India have maintained much more cautious positions toward digital currencies.
For Bridge, regulation could ultimately determine how quickly stablecoin applications develop across the region.
Abrams argues that clearer rules could unlock use cases that are currently difficult or impossible for businesses to pursue.
Cross-Border Payments Remain the Biggest Opportunity
Rather than expecting stablecoins to immediately replace conventional money for everyday domestic purchases, Abrams sees international payments as the more compelling opportunity.
The similarities between Latin America and Asian financial hubs reinforce his argument.
Both include growing middle classes, increasingly urban populations and economies that depend heavily on international trade.
In Brazil, for instance, stablecoins have benefited from demand created by cross-border economic activity.
Abrams believes Singapore and other Asian markets possess many of the same characteristics.
What’s Next for Bridge and Stablecoins?
The next phase of Bridge’s development is likely to focus on expanding the range of currencies and assets that can be represented digitally while making them easier for businesses to use.
If regulatory frameworks continue to mature, stablecoins could move beyond their current concentration in dollar-denominated assets and become a broader infrastructure for tokenized local currencies.
For Abrams, the long-term opportunity is not simply creating another digital currency.
It is building the infrastructure that allows businesses to move between currencies, payment networks and financial assets without having to manage the underlying complexity themselves.
Impact and Consequences
The shift toward tokenized local currencies could have significant implications for global finance.
A wider selection of stablecoins could give businesses more choices over how they hold, transfer and invest money while potentially reducing dependence on a single currency for digital transactions.
At the same time, greater adoption could intensify debates among governments over monetary sovereignty, financial regulation and the role of the U.S. dollar in the international economy.
Summary
Bridge’s experience has challenged the assumption that the biggest stablecoin opportunities would emerge primarily from the United States.
Instead, cross-border demand in Latin America, Africa, Europe and Asia has demonstrated how the technology can address weaknesses in traditional payment infrastructure.
With Bridge now operating under Stripe, Abrams is looking beyond today’s dollar-dominated market toward a financial system where local currencies and other assets can be tokenized.
He believes Asia could become an important growth region as regulation develops and businesses increasingly seek faster, more flexible ways to participate in global commerce.
