Greetings,

When Stripe acquired the crypto startup Bridge for $1.1 billion, it felt like a definitive signal that stablecoins were moving to the core of global payments. John Collison even described them as "superconductors" for financial services. But as we're learning, the path to replacing traditional rails with crypto is proving to be a lot bumpier than a podcast demo might suggest.

This week, Michael Roddan and Yueqi Yang take us inside the growing pains at Bridge. They reveal how a high-profile launch of a new stablecoin card was derailed almost immediately by scammers, forcing Stripe to freeze the program. It's a fascinating look at the tension between Stripe's massive ambitions for borderless money and the cold reality of sanctions, fraud, and the watchful eyes of traditional banking partners.

Why it caught my eye:

• The Scammer Surge: Almost immediately after launching its new stablecoin-backed cards in January, Stripe had to pause the rollout because scammers began targeting the program.
• The Sanctions Pivot: Despite the high demand for dollar-access in unstable economies, Bridge has recently banned customers from Venezuela and more than a dozen other high-risk regions to mitigate legal risks.
• Banking Friction: Stripe is walking a tightrope; any compliance slips within its crypto arm could jeopardize its vital access to the U.S. financial system through traditional banking partners.

This report is a must-read for anyone tracking how the world's most valuable private fintech is navigating the "risky business" of the crypto frontier.

Best,

Jessica Lessin
Founder & Editor-in-Chief

Stripe's Stablecoin Startup Tangles With Sanctions and Scammers

When Stripe acquired crypto startup Bridge last year, it described stablecoins as financial services "superconductors." Thanks to Bridge, Stripe has since integrated stablecoins into an array of products, such as stablecoin cards that allow customers to spend crypto anywhere.

Using stablecoins for payments turns out to be harder than it looks. After Stripe launched one of its new Bridge cards in partnership with another crypto firm in January, scammers instantly derailed the rollout. Stripe told the crypto client it was suspending the program launch as it tried to get fraud issues under control, according to an internal company message viewed by The Information.

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