Uber CEO considers using stablecoins to cut remittance costs

Main Points:

• Uber CEO Dara Khosrowshahi confirms that Uber is exploring stablecoins to reduce international remittance costs and improve settlement times.
• Stablecoins, pegged to fiat currencies, offer near-instant, low-fee transfers, making them attractive for global companies and potentially improving margins in regions with expensive banking rails.
• Industry momentum: Leading fintechs (Stripe, PayPal, Visa) and major banks (Bank of America, Standard Chartered) are rapidly integrating stablecoins into their payment and treasury solutions, signaling broader adoption across sectors.
• Regulatory landscape: In the U.S., the GENIUS Act could provide a federal framework for stablecoin issuers, while concurrent legislative amendments aim to enhance credit card competition separately. Ongoing debates may delay final regulatory approval.
• Use cases beyond remittances: Stripe’s Stablecoin Financial Accounts, Visa–Bridge stablecoin-linked cards, and PayPal’s integration illustrate how stablecoins are reshaping corporate treasury management, merchant settlements, and consumer payments.
• Technical considerations: Stablecoins solve volatility concerns inherent in cryptocurrencies by pegging to the U.S. dollar (e.g., USDC, USDT) or by deploying algorithmic mechanisms. Ethereum, Solana, and other blockchains are being utilized to scale stablecoin transactions.
• Implications for investors and blockchain practitioners: New yield opportunities emerge via protocol staking, liquidity provisioning in stablecoin pools, and the growing demand for on-chain stablecoin rails. Strategic investors should consider exposure to the stablecoin ecosystem and the infrastructure companies building it.

Uber’s Exploration of Stablecoins for Cross-Border Remittances

In June 2025, Uber’s CEO Dara Khosrowshahi revealed that Uber is in the “study phase” of using stablecoins as a way to transfer money globally, particularly to reduce the costs associated with traditional banking channels. He emphasized that stablecoins offer “a practical benefit other than crypto’s historic value,” citing their potential to streamline payments across multiple countries and to circumvent high foreign-exchange fees.

Traditionally, Uber’s global payments have relied on correspondent banking networks, which can be slow and incur multiple layers of foreign-exchange (FX) fees. By leveraging dollar-pegged stablecoins, Uber could potentially settle payments in seconds rather than days and eliminate intermediary costs. In regions where local banking rails are underdeveloped or expensive—such as parts of Latin America, Africa, and Southeast Asia—near-instant stablecoin settlements can compress operating costs significantly.

Khosrowshahi clarified that Uber’s experimental approach does not involve holding cryptocurrency on its balance sheet; instead, any stablecoin implementation would strictly adhere to existing consumer protection regulations. He also noted that Uber’s interest is not limited to stablecoins; the company remains aware of Bitcoin’s progress as an “established commodity,” though environmental and cost factors have hindered its mainstream payment adoption so far.

Understanding Stablecoins and Their Utility

What Are Stablecoins?

Stablecoins are a category of cryptocurrency designed to maintain a stable value by pegging their price to a reserve of assets, most commonly the U.S. dollar. Unlike volatile cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), stablecoins aim to mitigate price fluctuations. The two primary models are:

• Fiat-collateralized stablecoins (e.g., USDC, USDT): Backed 1:1 with fiat currency reserves held by regulated custodians.
• Algorithmic or crypto-collateralized stablecoins: Utilize smart contracts and algorithmic mechanisms to expand or contract supply in response to market demand, attempting to maintain a peg without direct fiat reserves.

In June 2025, the U.S. Congress considered the “GENIUS Act” (Global Exchange of National Innovation for United States Stablecoin), which proposes a federal regulatory framework for stablecoin issuers with $200 billion or more in circulation. Proponents suggest that formal oversight could generate “trillions of dollars” in demand for U.S. Treasuries and stabilize the broader financial system. However, concurrent amendments—such as credit card competition enhancements—may complicate or delay the legislation, since these provisions, while unrelated to stablecoins themselves, were appended to the bill; major payment networks (Visa, Mastercard) have lobbied for removal of these amendments to expedite passage.

Why Are Stablecoins Gaining Traction?

1. Cost Efficiency: Blockchain-based settlement requires fewer intermediaries than traditional correspondent banks, reducing fees by up to 80% for certain cross-border corridors.
2. Speed: On-chain transactions settle in seconds or minutes, as opposed to several days via legacy rails.
3. Accessibility: Individuals or businesses without access to robust banking services can convert local currency to stablecoins on-chain, then transfer funds across borders without opening multiple bank accounts.
4. Programmability: Smart contract integration allows for automated invoicing, escrow, and conditional payments, enhancing corporate treasury workflows.

For enterprises managing complex international payrolls, vendor payments, and treasury operations—like Uber—these utilities provide a compelling rationale to investigate stablecoin frameworks rather than relying exclusively on SWIFT and correspondent banking.

Potential Impact on Uber’s Global Operations

Reducing Remittance Costs

Uber operates in over 10,000 cities globally, requiring frequent cross-border fund flows for driver payouts, insurance payments, and corporate treasury management. Conventional banking corridors can charge 2%–5% in FX spreads, plus remittance fees, which accumulate significantly at scale. By testing dollar-pegged stablecoins, Uber aims to:

• Compress FX spreads: Blockchain-native transfers eliminate layers of FX conversions, potentially saving millions annually in transaction costs.
• Shorten settlement windows: Real-time or near-instant settlement improves cash flow visibility, especially in emerging markets with slower banking infrastructure.
• Enhance transparency: On-chain audit trails provide end-to-end visibility for compliance teams, simplifying reconciliation and anti-money laundering (AML) reporting.

Operational and Technical Challenges

While stablecoins offer efficiency gains, Uber must navigate:

• Regulatory compliance: Ensuring that transfers via stablecoin do not violate local money transmitter laws, KYC/AML requirements, or consumer protection regulations in jurisdictions like India, Brazil, and the Philippines.
• Liquidity management: Ensuring sufficient stablecoin liquidity during high-volume periods (e.g., holidays) to avoid slippage or on-chain congestion.
• Custody and counterparty risk: Partnering with reputable on- and off-ramps (e.g., Circle, Coinbase, BlockFi) to convert between stablecoins and fiat without exposing Uber to centralized counterparties.

Khosrowshahi stressed that Uber is still evaluating these factors, focusing on a “study phase” to measure operational overhead, regulatory considerations, and technology infrastructure before committing to full deployment.

Broader Industry Trends in Stablecoin Adoption

Stripe’s Stablecoin Financial Accounts

In May 2025, Stripe launched Stablecoin Financial Accounts, allowing businesses in 101 countries to hold balances in dollar-pegged stablecoins (initially USDC and USDB), receive payments via both crypto and fiat rails (ACH, SEPA), and send stablecoins globally. This capability builds on Stripe’s $1.1 billion acquisition of Bridge in February 2025, which created a stablecoin payments network to compete with SWIFT and traditional correspondent banking.

Stripe’s strategic focus is to:

• Provide businesses in volatile-currency regions (e.g., Argentina, Turkey, Nigeria) with a hedge against inflation by holding reserves in stablecoins.
• Enable near-instant inbound and outbound transfers in U.S. dollars without requiring USD bank accounts—particularly valuable for small- and medium-sized exporters.
• Integrate with card networks: In late April 2025, Visa and Bridge announced a partnership to issue stablecoin-linked Visa cards, allowing users to spend their stablecoin balances anywhere Visa is accepted.

By mid–2025, Stripe had seen stablecoin transaction volumes surge by over 50% year-over-year, reflecting how stablecoins are transitioning from niche crypto use to mainstream payment infrastructure.

PayPal and Other Fintech Initiatives

PayPal’s cross-border money service, Xoom, began offering USD stablecoin transfers in early 2025, enabling users to send remittances to over 50 countries via PayPal’s USDP stablecoin, with settlement times under one hour—compared to 1–3 business days via conventional rails. This integration marks PayPal’s return to crypto services after withdrawing Bitcoin payments in 2020 due to network congestion and fee volatility.

Revolut, a European neobank, launched support for USDC in late 2024, allowing customers to convert local currency to USDC for instant cross-border transfers within the Revolut network. The platform’s “global accounts” feature now facilitates seamless on-chain swaps between stablecoins and fiat currencies.

Regulatory Landscape and Challenges

United States: The GENIUS Act and Stablecoin Legislation

The GENIUS Act, introduced by David Sachs (former Trump administration crypto and AI special envoy), aims to formalize a federal regulatory framework for stablecoins with a market capitalization exceeding $200 billion. Sachs argues that providing “legal certainty overnight” for large stablecoin issuers could generate “trillions in demand” for U.S. Treasuries, effectively bolstering U.S. debt markets.

However, the bill’s progression faces headwinds:

• Credit card competition amendment: Proposed changes would require merchants to accept networks beyond Visa and Mastercard, intended to lower merchant fees. Payment industry incumbents have lobbied vigorously to remove or modify the amendment, fearing disruptions to existing interchange fee structures.
• Jurisdictional overlap: State-level stablecoin regulations (e.g., New York’s BitLicense framework) already impose strict capital reserve and audit requirements, raising questions about how federal rules would interact or preempt those.
• International coordination: As on-chain transfers can obfuscate origin and destination, aligning U.S. AML/CFT standards with FATF guidance is critical to prevent stablecoins from being used illicitly.

Given these complexities, many industry participants expect final passage of comprehensive stablecoin legislation to slip into late 2025 or early 2026, delaying large-scale corporate deployments that rely on full legal clarity.

Global Regulatory Developments

• Europe: The Markets in Crypto-Assets (MiCA) regulation, which came into force in July 2024, sets a standardized framework for stablecoins across EU member states. MiCA requires issuers to maintain 100% capital reserves in high-quality liquid assets and undergo regular audits, allowing stablecoins like Euro-backed tokens to flourish in the EU.
• Asia: Singapore’s Payment Services Act (amended in 2023) treats certain stablecoins as recognized payment tokens, subjecting them to licensing. The Monetary Authority of Singapore (MAS) encourages projects that align with the city-state’s “Payment Vision 2025,” targeting seamless e-payments for tourism and cross-border B2B trade.
• Latin America: Countries like Brazil and Argentina face hyperinflation risks, prompting private stablecoins pegged to USD or BRL to gain traction. Brazil’s Central Bank launched a pilot for a real-backed stablecoin (BRZC) in early 2025, combining on-chain transparency with central bank digital currency (CBDC) interoperability.

Innovations in Cross-Border Payments

Blockchain Networks and Scale

Ethereum remains the dominant blockchain for stablecoin issuance, housing USDC, USDT, and DAI. However, rising gas fees during peak periods spurred significant growth of stablecoin activity on alternative chains:

• Solana: In March 2025, the Solana network processed over $1.4 trillion in stablecoin transactions, thanks to its low fees and high throughput, making it a preferred rail for institutional transfers.
• Stellar: Known for fast, low-cost transactions, Stellar anchors multiple stablecoins, notably USD Anchor (a US-backed token), optimizing cross-border remittances to developing markets.
• Optimism and Arbitrum (Layer 2): These Ethereum Layer 2 networks handle USDC transactions at a fraction of mainnet costs, enabling 5–10× throughput improvements, which are vital for high-volume corporate remittance corridors.

Merchant and Consumer Use Cases

• Visa and Bridge Partnership: By launching stablecoin-linked Visa cards, users can pay merchants directly from their stablecoin wallets, with an automatic seamless conversion to fiat at the point of sale. This integration began its rollout in Q2 2025, covering over 80 countries, reducing conversion friction and expanding stablecoin acceptance at the POS level.
• Stripe’s Plug-and-Play Model: Stripe’s Stablecoin Financial Accounts allow merchants to hold reserves in stablecoins and issue virtual or physical multi-currency cards. Businesses operating in volatile economies can hedge currency risk while maintaining on- and off-ramps to local fiat payment rails, providing near-instant settlement for cross-border e-commerce transactions.
• Decentralized Treasury Management: Large enterprises (e.g., Unilever, Nestlé) are experimenting with decentralized treasury modules on-chain, which programmatically allocate funds to short-term stablecoin savings pools or on-chain money market protocols (e.g., Aave, Compound) to earn yield on corporate cash reserves. These initiatives hinge on stablecoins’ stability and auditability.

Remittances vs. Wholesale Transfers

• Retail Remittances: According to Cryptopolitan, retail stablecoin remittances climbed significantly during the 2024 bull market. Solutions like Bitso (Latin America) and Xoom (via PayPal USDP) reduce remittance fees from ~7% (traditional methods) to ~1%–2%, with settlement times under an hour.
• Wholesale Cross-Border Transfers: Stripe’s Bridge network and Circle’s USDC have gained traction in B2B corridors, enabling multinational corporations to move $100M+ in liquidity across on-chain rails overnight, compared to 1–2 days via SWIFT. This shift pressures banks to adopt on-chain stablecoin rails or risk losing market share.

Implications for Crypto Investors and Blockchain Practitioners

New Yield Opportunities

Stablecoins have become foundational to decentralized finance (DeFi). Yield-generating strategies include:

• Liquidity Pool Provisioning: Users supply USDC or USDT to automated market maker pools (e.g., on Uniswap, Curve) and earn trading fees proportional to pool volume.
• Lending and Borrowing Protocols: Platforms like Aave, Compound, and Maker allow depositors to earn interest on stablecoin holdings or to collateralize other tokens to borrow stablecoins at competitive rates.
• Algorithmic Stablecoin Inventories: Investors may allocate a percentage of their portfolio to algorithmic stablecoin protocols (e.g., FRAX), which can offer higher yields but carry protocol risk if the peg destabilizes.

Infrastructure and Security Considerations

• On-Chain Custody and Smart Contract Audits: Because stablecoins are high-value targets for hackers, rigorous audits by firms like CertiK, Quantstamp, and OpenZeppelin are essential. Institutions like Uber or Stripe must partner with regulated on-ramps (BitGo, Fireblocks) for custody and multisig solutions.
• Interoperability Bridges: Cross-chain bridges, such as Wormhole or Circle’s Cross-Chain Transfer Protocol (CCTP), enable seamless movement of USDC across Ethereum, Solana, Binance Smart Chain, and other networks. Practitioners should monitor bridge security and liquidity depth to avoid slippage or exploits.
• Regulatory Compliance and Oracles: On-chain KYC/AML oracles (e.g., Chainalysis KYT, Elliptic) integrate with smart contracts to flag suspicious transactions, allowing enterprises to reconcile compliance with pseudonymous blockchain operations.

Potential Risks

• Regulatory Uncertainty: US stablecoin regulations remain in flux. Should the GENIUS Act stall, issuers could face state-by-state rules, complicating global operations.
• Centralization Risk: Many popular stablecoins (USDC, USDT) are issued by centralized entities. A sudden regulatory crackdown or loss of reserves could destabilize ecosystems.
• Smart Contract Vulnerabilities: A single vulnerability in a widely used stablecoin protocol could ripple across DeFi, causing systemic losses. Regular audits and decentralized reserve models (e.g., Maker’s approach) help mitigate risk.

A Closer Look at Uber’s Strategic Motives

Cost-Benefit Analysis

• Cost Savings: For every $1 billion in cross-border payments, assuming 3% average fees, traditional rails incur $30 million in fees. If stablecoin-based rails cut fees by 80%, Uber could save $24 million per $1 billion moved, a material benefit given their $70 billion annual payment volume.
• Speed and Customer Experience: Faster settlement times improve driver satisfaction by enabling near-real-time payouts in certain regions. High driver churn rates in emerging markets often correlate to delayed payments and limited banking access. By offering more reliable on-chain payouts, Uber could improve retention.
• Regulatory Legitimacy: While exploring stablecoins, Uber must ensure it does not become an unlicensed money transmitter in vertically regulated jurisdictions (e.g., Ghana, Indonesia). The company could partner with licensed entities (Circle, Coinbase Custody) to provide a compliant interface.

Competitive Positioning

Uber is not alone in investigating stablecoins. Meta, through its Novi wallet initiative, has explored pilot stablecoin remittances in Latin America since 2023, partnering with Paxos to test USDP transfers. Though Meta paused Novi in late 2024, it continues to research stablecoin integration for cross-border payments and marketplace disbursements.

By front-running competitors, Uber could differentiate its platform as a de facto digital wallet for drivers and couriers in cash-heavy markets. The move would also position Uber to integrate loyalty programs, allowing drivers to swap earned fare revenue into stablecoins and potentially participate in decentralized finance strategies—such as staking stablecoin pairs for additional yield.

Outlook: Where Do Stablecoins Go Next?

Evolving Regulatory Environment

In the coming 6–12 months, expect:

• U.S. Federal Guidelines: The GENIUS Act debate will clarify reserve, audit, and consumer protection requirements. If passed, major issuers like Circle (USDC) and Paxos (USDP) could become “bank-like” entities regulated by the Federal Reserve or Office of the Comptroller of the Currency (OCC).
• EU Implementation of MiCA: Member states will begin issuing licenses to “e-money token” providers, giving confidence to stablecoin issuers to expand across Europe under a single regulatory umbrella.
• Asia-Pacific Licensing: Jurisdictions like Singapore and Japan will continue refining sandbox programs, accelerating stablecoin-based proofs of concept for cross-border trade corridors (e.g., Singapore – Malaysia, Japan – Philippines).

Institutional Adoption

As infrastructure matures, expect large corporations—beyond Super Apps like Uber—to integrate stablecoins into their treasury management:

• Corporate Balance Sheets: Companies may hold 5–15% of short-term cash reserves in audited, regulated stablecoins to earn on-chain yields via institutional-grade lending platforms while maintaining USD peg stability.
• Supplier Payments: Retail chains with global suppliers could deploy stablecoins for vendor settlements, reducing FX risk. Hong Kong–based Li & Fung has already piloted USDC payments for certain Asia-Pacific suppliers in early 2025.
• Banking Partnerships: Banks will offer “stablecoin-as-a-service” platforms to corporate clients, enabling seamless conversion between CBDCs, stablecoins, and fiat deposits.

Innovations on the Horizon

• Programmable Payments: Smart contract–based invoices that automatically execute payment when goods track to specified locations. For instance, a ride-share company could program driver bonuses to be paid in stablecoins once trip metrics (distance, time) match contractual thresholds.
• Central Bank Digital Currency (CBDC) Interoperability: As China’s e-CNY and the EU’s digital euro pilot expand in 2025, interoperability layers (e.g., ISO 20022–compliant messaging standards) will connect CBDC systems to private stablecoins, giving enterprises flexibility to choose rails based on cost, speed, or regulatory preference.
• Decentralized Autonomous Organizations (DAOs) for Treasury: In 2025, a handful of Fortune 500 companies are exploring DAO-like governance for managing stablecoin treasuries—voting on which protocols to deposit funds into for yield, subject to corporate governance oversight.

Conclusion

Uber’s exploration of stablecoins, as announced by CEO Dara Khosrowshahi, represents a pivotal moment in the evolution of corporate finance and cross-border payments. By potentially leveraging dollar-pegged stablecoins for international remittances, Uber could drastically reduce FX costs, accelerate settlement times, and enhance transparency across its global platform.

Beyond Uber, a wave of fintech titans—led by Stripe, PayPal, and Visa—are embedding stablecoin infrastructure into their core offerings, signaling a structural shift from traditional banking rails to on-chain settlements. Stripe’s Stablecoin Financial Accounts, Visa’s stablecoin-linked cards, and PayPal’s USDP integration illustrate how stablecoins are rapidly bridging the gap between crypto innovation and mainstream finance.

Regulators in the U.S., Europe, and Asia recognize stablecoins’ promise but are grappling with how to balance innovation with consumer protection and financial stability. The outcome of the GENIUS Act, MiCA, and national licensing regimes will determine how swiftly enterprises can adopt stablecoins at scale. Until these frameworks crystallize, corporate pilots—like Uber’s study phase—must carefully manage compliance, liquidity, and operational integration.

For crypto investors and blockchain practitioners, the expanding stablecoin ecosystem presents new opportunities: entry into yield-generating DeFi strategies, exposure to infrastructure builders (e.g., Circle, Paxos, Terraform Labs), and participation in programmable payments innovations. However, this landscape still harbors risks—regulatory uncertainty, reserve transparency, and smart contract vulnerabilities—that must be mitigated through rigorous due diligence and strategic partnerships.

In essence, stablecoins are no longer a fringe use case in 2025; they are emerging as a cornerstone for cross-border commerce, corporate treasury management, and consumer payments. As major players like Uber test on-chain remittances, the broader market will watch closely to see how these pilots translate into cost savings, improved user experiences, and a more efficient global payment infrastructure. Whether stablecoins become ubiquitous in everyday transactions hinges on regulatory clarity, technology scalability, and industry collaboration—but all signs point to 2025 as the year stablecoins truly pull away from their crypto roots and reshape mainstream finance.