Bridge founder Zach Abrams sees an opportunity for ‘tokenized local currencies’ across Asia

Zach Abrams, the founder of stablecoin company Bridge, remarks that he was unexpectedly driven by demand from markets outside of the United States. Abrams explains that Bridge’s initial customers sought the firm to build cross-border payment infrastructure between the U.S. and nations such as Colombia, Venezuela, and the Philippines.

As part of Stripe, the stablecoin company’s rapid growth was catalyzed by regions experiencing significant border friction, notably Latin America. Abrams asserts that the forthcoming growth of the stablecoin industry could stem from tokenizing non-dollar currencies. Currently, stablecoins are primarily denominated in U.S. dollars, representing over 95% of all transactions.

Abrams argues that this U.S. dollar dominance might be a reflection of the nascent stage of the stablecoin sector. He contends that as more infrastructure becomes tokenized, tokenized local currencies will assume crucial importance. Abrams elaborates that businesses in Singapore or other locales would ideally hold tokenized Singapore dollars to convert into Treasuries or other assets for generating yield.

Although Bridge presently supports tokenized euros, Mexican pesos, and British pounds, it is set to introduce stablecoins based on the Brazilian real soon. Abrams co-founded Bridge in 2021 alongside Sean Yu, who later became the firm’s chief technology officer. The pair initially bet on the mainstream adoption of stablecoins due to their potential for offering affordable and swift money transfers.

SpaceX, for instance, leverages Bridge’s technology to transfer earnings from Starlink, its satellite internet service, back to the U.S. (the technology is particularly advantageous in rural areas of emerging markets where traditional providers are absent). By 2024, Bridge was processing payment volume exceeding $5 billion, and raised $58 million from investors such as Sequoia and Haun Ventures.

Stripe acquired Bridge in 2024 for $1.1 billion, marking the company’s most substantial acquisition at the time (since then, Stripe has surpassed this with its purchase of OpenRouter for a reported price of over $7 billion). Abrams aims for Bridge to play a similar role in tokenization as Stripe did in online payments, providing a unified "simplification layer" over a convoluted array of alternatives.

Abrams notes that Asia's financial powerhouses such as Singapore and Hong Kong are implementing new regulatory frameworks for stablecoins, despite China and India's more skeptical attitudes towards digital currencies in general. Abrams observes that the region is increasingly embracing stablecoins, albeit not yet to the same extent as the U.S. He draws a comparison between Latin America and Asia, both regions boasting burgeoning middle classes, rapid urbanization, and a strong reliance on international trade.

Abrams asserts that stablecoin adoption is particularly significant in Brazil due to the economy's substantial cross-border business dealings and supportive regulatory environment. He emphasizes that for stablecoins to reach their full potential, cross-border money transfers rather than domestic transactions are the key opportunities.