Bridge, the stablecoin company owned by prominent US payment firm Stripe, has received preliminary approval for a national bank trust charter from the US federal government. This banking license will allow Bridge to issue and manage stablecoins under federal supervision, enhancing transparency and trust within the cryptocurrency market. Stripe is a globally recognized fintech company focused on innovating payment systems, and its subsidiary Bridge specializes in stablecoins—cryptocurrency tokens pegged to fiat currencies like the US dollar to maintain price stability. Stablecoins facilitate digital financial transactions by reducing volatility risks. In recent years, stablecoins have gained popularity, prompting financial institutions and regulators to strengthen oversight to protect consumers and ensure financial system stability. With this approval, Bridge will operate under federal banking laws, increasing the transparency and legal safeguards of its services. Stripe’s advancement is expected to reinforce its position in the stablecoin sector and encourage other financial entities to adopt similar models. However, increased government regulation in the crypto space may pose new challenges, requiring companies to remain adaptable in their strategies.
Source: coindesk
