In a significant move within the fintech landscape, payment processing powerhouse Stripe is set to acquire the stablecoin platform Bridge in a deal valued at $1.1 billion. This acquisition not only marks one of Stripe’s most substantial purchases to date but also aligns with the company’s commitment to facilitate stablecoin payments, a promise made by its CEO earlier this year.
"We are thrilled to unite with Stripe," stated Zach Abrams, CEO and co-founder of Bridge, in an October 21 post on X (formerly Twitter). He went on to emphasize his enthusiasm for the collaboration, noting the potential for Stripe to develop the most advanced stablecoin infrastructure available. Patrick Collison, Stripe's CEO, echoed this sentiment on social media, expressing excitement about welcoming the @stablecoin team to @stripe.
The news regarding the finalized acquisition was first uncovered by Michael Arrington, co-founder of TechCrunch, on October 20.
This acquisition stands to be Stripe's largest to date, as the company, headquartered in San Francisco and Dublin, was valued at an impressive $70 billion as of July. Furthermore, it represents one of the most significant transactions within the cryptocurrency sector.
Stripe, a leading platform for payment processing, empowers businesses to seamlessly accept credit and debit cards as well as various online payment forms. Earlier this year, the company revealed that it had surpassed the remarkable threshold of $1 trillion in total payment volume for 2023, contributing approximately 1% to the global gross domestic product (GDP).
The announcement comes just six months following co-founder John Collison’s declaration that the firm would begin supporting global stablecoin transactions “this summer.” Additionally, it follows closely on the heels of Stripe's integration of Circle USD (USDC) stablecoin into its primary payments interface less than two weeks prior.
Bridge, founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, is a payments network built on stablecoin technology aimed at rivaling established systems like SWIFT and traditional credit card networks. Prior to founding Bridge, Abrams served as the head of consumer products at Coinbase and was also the founder of Evenly, a peer-to-peer payments platform acquired by Square. Sean Yu brings extensive engineering experience from his prior roles at notable companies such as Coinbase, Square, DoorDash, and Airbnb.
Bridge offers businesses the capacity to create, store, send, and accept stablecoins, positioning itself as a formidable contender in the Web3 payments space. Earlier in the year, the platform secured $58 million in funding from prominent investors, including Sequoia, Ribbit, and Index Ventures.
With this strategic acquisition, Stripe is poised not only to enhance its technological capabilities but also to establish a strong foothold in the evolving world of stablecoin payments, potentially reshaping the future of digital transactions.
