SpaceX’s Innovative Solution to Cross-Border Payments in Developing Markets

The Challenge of Traditional Banking Infrastructure

Five years ago, SpaceX launched Starlink, which has since grown into its biggest revenue driver, expanding to over 100 countries. However, as Starlink scaled, it faced a major hurdle: accepting payments in developing markets, where traditional banking infrastructure is unreliable, slow, and prone to blocking transactions. Many local banks across Africa, Latin America, and Asia struggle with international payments, forcing SpaceX to look for alternatives.

The Solution: Stablecoins

To bypass these challenges, SpaceX turned to stablecoins, a fast-growing method for cross-border payments already widely used in emerging markets. The company partnered with Bridge, a stablecoin payments platform, to accept payments in various currencies and instantly convert them into stablecoins for its global treasury. This move positioned Bridge as a viable alternative to correspondent banks in markets where traditional financial systems fall short. Soon after, Stripe took notice, acquiring the startup for further development of its crypto payment capabilities.

The Potential of Stablecoins in Africa

Africa presents a different scenario. In many cases, innovation moves faster than regulation, forcing policymakers to react only after fintech proves its value—just as they did with mobile money, according to Zekarias Amsalu, co-founder of one of Africa’s top fintech events. He believes regulators, rather than being overtly cautious, should embrace stablecoins as they already help reduce cross-border transfer and remittance costs by up to 75%.

The Case for Formalizing Stablecoins

“If you are willing to formalize Franco Valuta [policy that allows the import of goods without using foreign exchange from a bank] when the dollar crunch bites, against all real risks, why not consider formalizing stablecoins that are provided by licensed exchanges with all transparency and compliance?” Amsalu posits.

The Impact of Regulation on Stablecoin Adoption

Whether their stance changes or not may depend on how regulation shapes up in the U.S., which is considering new laws that would have a global impact on stablecoins: A strict regulatory approach—though unlikely—could slow adoption and impose tighter financial controls on issuers. On the other hand, a pro-stablecoin stance could encourage more countries to create clear licensing rules for digital assets. “These are very strong signals for investors,” Finkelstein said.