Payments powerhouse Stripe has reportedly acquired the stablecoin platform Bridge in a transaction valued at $1.1 billion. The confirmation came from Michael Arrington, co-founder of TechCrunch, through an X post on October 20. As of now, neither Stripe nor Bridge has issued an official announcement regarding the acquisition.
Just last week, crypto.news reported that negotiations between the two firms were nearing completion, although no agreement had been finalized at that time. Founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, Bridge specializes in the creation, transfer, and storage of stablecoins. This acquisition follows Bridge’s recent $40 million funding round in August, led by investors such as Sequoia, Ribbit, and Index.
The move aligns with Stripe’s strategy to broaden its offerings in the cryptocurrency sector. The multinational payments processor initially ventured into Bitcoin payments in 2014 but paused this service four years later, citing low usage rates. However, in 2024, Stripe’s president John Collison announced the company’s renewed focus on the crypto space, specifically highlighting the increasing demand for stablecoin payments due to their faster transaction speeds and lower costs.
Stablecoins, which are digital currencies pegged to stable assets like the U.S. dollar, have become increasingly popular as they provide a hedge against the volatility seen in other cryptocurrencies such as Bitcoin. Their stability makes them ideal for everyday transactions.
On October 15, Stripe began accepting Circle’s USDC stablecoin through a partnership with Paxos, allowing merchants in 70 countries to facilitate fiat-settled stablecoin payments under its “Pay with Crypto” option. This initiative is part of Stripe’s broader engagement with the cryptocurrency ecosystem, which includes enabling payouts for creators on X using USDC and launching a fiat-to-crypto on-ramp service in 2022.
The timing of the acquisition coincides with a surge in stablecoin usage, which reached an all-time high market capitalization of nearly $170 billion in Q3 2024. Ripple CEO Brad Garlinghouse has projected that the stablecoin market could potentially reach $3 trillion by 2030. Traditional financial institutions are also entering the stablecoin arena, as seen with Visa’s recent launch of a platform that allows banks to issue fiat-backed stablecoins. This development follows the observation that stablecoin transaction volumes are nearing those of traditional payment networks.
In addition, PayPal made its foray into the stablecoin market with the introduction of PayPal USD (PYUSD) on the Ethereum blockchain, aimed at facilitating low-cost transfers without the need for a central intermediary. Since its launch, PYUSD has expanded to the Solana blockchain and boasts a market capitalization of over $627 million, according to CoinGecko data.
Related topics:
World Liberty Financial Faces Website Outage Following Token Launch
Google Reinstates Crypto Price Charts in Search Results Amid Community Outcry
Crypto Clash: Warren and Deaton Debate Regulation Ahead of Elections
