Ridesharing company Uber Technologies Inc. is exploring the use of stablecoins to reduce expenses associated with international money transfers, CEO Dara Khosrowshahi announced during the Bloomberg Tech Summit in San Francisco on June 5. The company remains in early evaluation stages as it examines how digital currencies could streamline its global financial operations.
What to Know:
- Uber CEO says the company is studying stablecoins to lower costs of moving money internationally
- Stablecoin market cap reached $230 billion in April, growing 54% year-over-year according to Citigroup
- Major institutions including Stripe and banks are increasingly exploring stablecoin integration for business operations
CEO Signals Cautious Interest in Digital Currency Solutions
Khosrowshahi emphasized the company's methodical approach to cryptocurrency adoption. "We're still in the study phase, I'd say, but stablecoin is one of the, for me, more interesting instantiations of crypto that has a practical benefit other than crypto as a store of value," he said during his appearance.
The executive distinguished between stablecoins and other cryptocurrencies like Bitcoin. He acknowledged Bitcoin as a "proven commodity" while noting varying market opinions about its future trajectory. For Uber, stablecoins present a different value proposition focused on operational efficiency rather than investment speculation.
Stablecoins are cryptocurrencies designed to maintain stable value by pegging to traditional currencies, most commonly the U.S. dollar. These digital assets are typically backed by reserves of cash and short-term government bonds, providing stability that volatile cryptocurrencies lack.
"I do think that stablecoin is quite promising, especially for global companies that are moving money around globally to create a mechanism for us to essentially reduce costs in terms of moving money internationally," Khosrowshahi explained. The potential cost savings could prove significant for Uber's worldwide operations spanning multiple currencies and regulatory environments.
Growing Corporate and Institutional Adoption
Uber joins a growing list of major corporations examining stablecoin integration. Payment processing giant Stripe has engaged in preliminary discussions with banks about potential stablecoin implementation, according to co-founder and president John Collison in a May Bloomberg interview.
Institutional interest appears widespread across the financial sector. A May 14 report from digital assets platform Fireblocks revealed that 90% of surveyed institutional players are exploring stablecoin use in their operations. This trend reflects growing confidence in stablecoin technology among traditional financial institutions.
Government entities have also shown increasing interest in stablecoin development. Russian finance ministry officials proposed creating a government-backed stablecoin in April. During the same month, three major Abu Dhabi institutions collaborated to launch a dirham-pegged stablecoin, demonstrating regional adoption of the technology.
The stablecoin market has experienced substantial growth over the past year. According to Citigroup research, U.S. dollar-denominated stablecoins reached a market capitalization of $230 billion in April, representing a 54% increase from the previous year.
Market Dominance and Transaction Volume Growth
Two stablecoins control the vast majority of market share. Tether (USDT) and USD Coin (USDC) together account for approximately 90% of the stablecoin market, establishing clear market leaders in the space.
Transaction volumes have reached unprecedented levels, with total stablecoin volumes hitting $27.6 trillion in 2024. This figure surpassed the combined transaction volumes of credit card giants Visa and Mastercard by 7.7%, highlighting the rapid adoption of stablecoin payment systems.
Data from Artemis indicates that $94.2 billion in stablecoin transactions were processed between January 2023 and February 2025. These figures demonstrate the technology's growing role in global financial transactions and its potential appeal to companies like Uber seeking cost-effective international payment solutions.
For Uber, which operates across numerous countries with varying currencies and banking systems, stablecoins could provide a unified payment mechanism. The technology might reduce foreign exchange costs, eliminate certain banking fees, and accelerate international money transfers.
Closing Thoughts
Uber's exploration of stablecoin technology reflects broader corporate interest in digital currency solutions for operational efficiency. While the company remains in preliminary evaluation stages, the growing stablecoin market and institutional adoption suggest this technology could play an increasingly important role in international business operations.