Australian stablecoin payments startup Stables has announced its expansion into Europe through a partnership with Mastercard. Co-founder Bernardo Bilotta indicated that this move is part of a broader trend of dollar-pegged assets gaining mainstream acceptance.
Bilotta emphasized the importance of the expansion, noting that the potential customer base in Europe is approximately twenty times larger than in Australia. The partnership will enable Stables users to make purchases using Circle’s USD Coin (USDC) in 27 European countries where Mastercard is accepted, including through digital payment platforms like Apple Pay and Google Pay.
Bilotta highlighted that stablecoins are becoming increasingly popular with everyday users, not just those deeply involved in the crypto community. He referenced Morgan Stanley’s characterization of stablecoins as “crypto’s killer app” and noted that they have moved beyond “crypto-native” circles. Despite the speculative nature of other cryptocurrencies, Bilotta pointed out that stablecoins have proven to have the best “product-market fit” due to their stability.
“Everyone in crypto is talking about assets that fluctuate wildly, but the data shows that digital dollars have the most solid product-market fit,” Bilotta said. He noted that stablecoins are now widely used for trading, remittances, cross-border payments, and other applications around the world. People in countries with high inflation, such as Argentina and Turkey, and regions with significant currency fragmentation, like Southeast Asia, are increasingly turning to stablecoins as a more stable alternative.
Founded in 2021, Stables allows users to purchase everyday items with USDC via a digital debit card accepted anywhere Mastercard is used. The startup has received backing from crypto venture fund Jump Capital, Pocketbook co-founder Alvin Singh, Bosco Tan, and Zip co-founder Larry Diamond. In March, Stables launched international remittance capabilities between Australia and the Philippines. On June 25, the company, in collaboration with Mastercard, enabled support for the euro on its app, allowing users to spend USDC in 23 European Union countries.
Despite the regulatory uncertainty in Australia compared to the European Union, which is set to introduce its comprehensive crypto framework, MiCA, in December, Bilotta views Australia as an ideal “sandbox” for building a crypto firm. He noted that operating under Australia’s stringent financial regulations makes it easier to export their business models to other jurisdictions.
Bilotta also addressed concerns from other large crypto businesses about Australia’s regulatory clarity. He stated that Stables is fully compliant with domestic regulations and does not require users to take on risk in the same way crypto exchanges do. However, he acknowledged the need for the Australian government to address banking issues with crypto companies to foster a more favorable environment for crypto businesses.
Australia’s crypto industry has faced challenges, such as Binance’s suspension of Australian dollar fiat services in May 2023 due to a decision by its third-party payment provider, Cuscal. Additionally, several of Australia’s largest banks have restricted both retail and commercial crypto use over the past 18 months. Despite these hurdles, Bilotta remains optimistic about Australia’s potential as a hub for crypto innovation.
