Code & State Tackles Stablecoin Gaps With US$3 Million Push

Founded by Cédric Waldburger and Artia Moghbel in Dubai in 2022, Code & State was created with a singular vision: to support ventures solving the practical, and often technical, challenges of stablecoin applications, from payments and remittances, to compliance and security.

Its mission arrives at a pivotal moment, with the volume of global stablecoin transactions topping US$15 trillion in 2024, surpassing annual payment volumes by financial giants like Visa. And with momentum building around stablecoins, the venture studio drew US$3 million in April in backing from Massachusetts-based venture capital investment (VC) firm Warburg Serres and the London-based digital assets firm KR1. 

In a conversation with Inc. Arabia, Waldburger, whose crypto journey began over a decade ago, explained how a personal passion became a professional calling. “Discovering Bitcoin in 2012 opened my eyes to the concept of borderless, scarce digital money," he shared. "That fascination led me down the crypto rabbit hole."

Since then, Waldburger has contributed to major crypto projects such as Dfinity (ICP) and Liquity, while also emerging as a notable Web3 investor. His experience reinforced his belief that stablecoins are more than just blockchain innovations—they are foundational tools in the next generation of finance. 

Code & State is focused on building the infrastructure required to scale stablecoin adoption. The venture studio collaborates with entrepreneurs to develop solutions for real-world challenges in areas such as remittances, compliance, privacy, and usability.  A core element of its approach is its entrepreneurs-in-residence (EIR) program, which provides funding, mentorship, and access to a broad investor and expert network.

This program has gained strong traction, with selected EIRs driving significant innovation in the stablecoin space. Key to Code & State’s success is its high-trust, founder-first model. Unlike traditional venture studios that take significant equity stakes, Code & State gives founders full control over their ventures, while providing deep support. 

Code & State’s decision to set up its headquarters in Dubai has also been an advantage. The UAE’s regulatory clarity and ambitions to become a global crypto hub offer fertile ground for the studio’s operations. “Dubai is an ideal base," Waldburger notes. "Regulators offer clear guidance, and the UAE’s pro-business environment enables fast execution."

That said, the studio’s vision is global. It draws on firsthand insights from entrepreneurs across markets, like one of its team members based in Argentina—where stablecoins are used to hedge against inflation and currency controls. “His input has been critical in shaping our view of emerging market use cases,” Waldburger shares. 

The Growing Impact Of Stablecoins In Finance And Web3 

As the demand for reliable digital currencies grows, stablecoins are emerging as a crucial component of the evolving financial landscape. “Stablecoins are digital tokens pegged to traditional currencies," Waldburger explains. "Most are linked to the US dollar and maintain a stable value of $1 per token. Some, like USDC and USDT, are backed by fiat reserves. Others, like LUSD or BOLD, rely on decentralized mechanisms and are collateralized by assets like Ethereum (ETH)."

Their utility, Waldburger argues, extends far beyond digital wallets. “Their stability makes them essential in Web3—not just as a payment method for real-world goods and services, but as a way to store value without being exposed to crypto market volatility.”

Indeed, stablecoins are not only enhancing the efficiency of digital transactions, but also revolutionizing global finance by offering more accessible and affordable alternatives to traditional systems. “Stablecoins will become core infrastructure for financial systems—whether visible to users or not," Waldburger says. "They’re already streamlining remittances and international transfers. Next, they’ll enable new forms of credit and banking services that don’t rely on traditional institutions."

Waldburger also believes that stablecoins have the power to transform access to financial tools in underserved markets. “Stablecoins can unlock access to financial tools and markets that were historically unavailable to many,” he declares. “Not all are equal in their decentralization or censorship resistance. So, it’s essential to understand the specific stablecoin you’re using.” Yet, the path ahead isn’t without roadblocks. Two of the most pressing challenges, Waldburger tells us, are user privacy and system usability. 

“A core challenge is privacy," he explains. "Blockchain transactions are public by default. Sending 10 digital dollars to a merchant could expose your entire transaction history. This is a serious issue for individuals and especially for businesses. At Code & State, our venture studio focused on scaling stablecoin infrastructure, one of our entrepreneurs-in-residence is building Mirage, a privacy-preserving stablecoin transfer protocol.” 

The firm is also developing what it calls a safety net for digital currencies. “We’re developing a novel insurance solution—think of it as a Federal Deposit Insurance Corporation (FDIC) for stablecoins," Waldburger shares. "We’re also tackling usability: team wallets for stablecoins are still clunky and overly technical. To operate at scale, we need significantly improved UX. These are just a few of the problems we’re working on with our EIR program."

According to Waldburger, mainstream acceptance of stablecoins is not only inevitable—it’s imminent. “We’re seeing major institutions—Visa, Bank of America, PayPal—embrace stablecoins," he points out. "That adoption is accelerating the development of infrastructure, tooling, and user-friendly applications. Since starting Code & State last year, we’ve already witnessed massive momentum in this space." 

Waldburger also highlighted a fast-growing trend within the sector: stablecoins tied to regional currencies. “Non-USD stablecoins have grown by 115 percent, now surpassing $500 million in the market cap,” he says. “This shift is underway, and I believe that in the next two years, we’ll see strong representation of regional currencies in the stablecoin ecosystem. These tokens offer financial sovereignty and hedge against currency volatility—especially important in emerging markets.” 

Looking ahead, Waldburger envisions a world where stablecoins take center stage in everyday transactions. “The benefits—speed, transparency, programmability—are simply too strong to ignore,” he says, predicting that stablecoins could replace fiat currency for most people by 2035. For blockchain founders aiming to enter the space, his advice is simple but firm: “Start with the user. Validate that what you’re building addresses a real, urgent need. Too many Web3 projects start with a solution looking for a problem—and that rarely works.” 

Waldburger also underscores the importance of regulatory readiness. “For stablecoins, understanding regulation is critical," he states. "Know what jurisdiction you’re operating in, and whether you need licenses. Early clarity here can save months of delay and substantial costs. At Code & State, we help founders navigate this from day one."

Pictured on the lead image is Code & State co-founder Cédric Waldburger. Image courtesy Code & State.