Australian Stablecoin Startup Stables Expands to Europe

Australian stablecoin payments startup Stables has expanded to Europe in partnership with Mastercard, allowing users to make purchases with USD Coin in 27 countries.

Points

• Stables expands to Europe in partnership with Mastercard.
• Users can make purchases with USD Coin in 27 countries.
• Expansion increases Stables’ addressable market significantly.
• Stablecoins are gaining mainstream adoption.

Australian stablecoin payments startup Stables has announced its expansion to Europe in partnership with Mastercard. Co-founder Bernardo Bilotta highlighted that this expansion marks an important step for the company, significantly increasing its addressable market. The new partnership will enable Stables users to make purchases with Circle’s USD Coin （USDC） in 27 European countries, wherever Mastercard is accepted, including through digital vendors like Apple and Google Pay.

Bilotta emphasized that stablecoins are no longer limited to crypto enthusiasts but are being adopted by everyday users with genuine needs. He described stablecoins as “crypto’s killer app,” noting their firm emergence from “crypto-native” circles. Despite crypto’s speculative reputation, Bilotta pointed out that stablecoins offer the best “product-market fit” due to their stability.

Stables, founded in 2021, allows users to purchase everyday items with USDC via a digital debit card anywhere Mastercard is accepted. The startup is backed by crypto venture fund Jump Capital, Pocketbook co-founder Alvin Singh, Bosco Tan, and Zip co-founder Larry Diamond.

In March, Stables launched international remittance payments between Australia and the Philippines. In June, they enabled support for the euro, allowing users to spend USDC in 23 EU countries. Despite the less clear crypto regulation in Australia compared to the EU, Bilotta believes Australia is an ideal “sandbox” for building a crypto firm due to its high regulatory standards in financial services.

Bilotta noted that Australia’s regulatory clarity and high standards make it easier to export their models to other jurisdictions. However, he acknowledged that the country needs to address banking issues with crypto companies to become a “crypto hub.” The Australian crypto industry faced a significant blow in May 2023 when Binance suspended Australian dollar fiat services following a decision from its third-party payment service provider.

Explanation

• Stables’ expansion to Europe with Mastercard significantly increases its market reach.
• Stablecoins are gaining mainstream adoption, moving beyond crypto enthusiasts.
• Australia’s high regulatory standards make it

an ideal testing ground for crypto innovations despite challenges such as banking issues.

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an ideal testing ground for crypto innovations despite challenges such as banking issues. Larger crypto businesses, including the Australian arms of exchanges Kraken and Coinbase, have expressed concerns about the lack of regulatory clarity in the country. Bilotta, however, noted that Stables is fully compliant with domestic regulations and does not require users to take on the same risks as crypto exchanges.

Bilotta also highlighted the importance of stablecoins in countries experiencing high inflation, such as Argentina and Turkey, and regions with high levels of currency fragmentation like Southeast Asia. Stables’ partnership with Mastercard in Europe is a significant step towards mainstream adoption, allowing everyday users to benefit from the stability and convenience of dollar-pegged assets.

Explanation

• Stables’ expansion to Europe with Mastercard significantly increases its market reach.
• Stablecoins are gaining mainstream adoption, moving beyond crypto enthusiasts.
• Australia’s high regulatory standards make it an ideal sandbox for crypto innovations despite some challenges.
• Stablecoins offer stability and convenience, attracting users from high-inflation countries and regions with currency fragmentation.