🌎 Stripe Acquires Stablecoin Platform Bridge in $1.1 Billion Deal

Stripe Acquires Stablecoin Platform Bridge in a $1.1 Billion Deal

Payments giant Stripe has successfully acquired the stablecoin platform Bridge in a deal valued at over $1 billion.

Michael Arrington, co-founder of TechCrunch, confirmed the acquisition via an Oct. 20 post, highlighting that the acquisition cost Stripe $1.1 billion. As of now, neither company has released an official statement regarding the purchase.

Background on Bridge and Stripe

Bridge, founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, specializes in the creation, transfer, and storage of stablecoins. The acquisition comes after Bridge’s successful $40 million funding round in August, led by Sequoia, Ribbit, and Index.

For Stripe, this acquisition aligns with its strategic plans to expand its services within the crypto sector. Initially, Stripe introduced Bitcoin payments in 2014 but discontinued the service in 2018 due to underutilization. However, in 2024, Stripe’s president John Collison announced the company’s re-entry into the crypto market with a focus on stablecoin payments. This was driven by increased demand for blockchain-based transactions, which offer better speeds and lower costs.

What Are Stablecoins?

Stablecoins are digital currencies pegged to stable assets, such as the U.S. dollar, to avoid the volatility commonly seen in cryptocurrencies like Bitcoin. Their stable value makes them suitable for everyday transactions.

Stripe’s Recent Moves in the Crypto Sector

On Oct. 15, Stripe began accepting Circle’s USDC stablecoin in partnership with Paxos, under its “Pay with Crypto” option. This move allowed merchants across 70 nations to initiate fiat-settled stablecoin payments.

Previously, Stripe has engaged with the cryptocurrency sector through various initiatives, including the introduction of USDC payouts for creators and the launch of a fiat-to-crypto onramp service in 2022.

Stablecoin Market Trends

The acquisition of Bridge coincides with a significant rise in stablecoin usage, which reached an all-time high market capitalization of nearly $170 billion in Q3 2024. According to Ripple CEO Brad Garlinghouse, this market has the potential to hit $3 trillion by 2030.

Traditional financial platforms have also ventured into the competitive stablecoin market. For example, in early October, Visa launched a platform that allows banks to issue fiat-backed stablecoins. This move came after observing that stablecoin transaction volumes were approaching levels seen in traditional payment networks.

Last year, PayPal entered the stablecoin market with the launch of PayPal USD (PYUSD) on Ethereum, aiming to enable lower-cost transfers without a central intermediary. Since its launch, PYUSD has expanded to Solana and boasts a market capitalization of over $627 million.