Global payment platform Stripe is in talks to acquire Bridge, a company that specializes in transactions involving stablecoins like Tether’s USDT and Circle’s USDC. This move reflects Stripe’s commitment to embracing digital currencies and blockchain technology for faster global transactions.
Bridge, founded by Zach Abrams and Sean Yu less than two years ago, has already secured $58 million in funding from investors like Sequoia Capital and Ribbit Capital. The company’s platform offers APIs that simplify the integration of stablecoin functionalities for businesses without the need to handle complex blockchain processes.
Stripe, founded by Patrick and John Collison, recently allowed US merchants to accept payments in USDC after pausing its involvement with crypto. By potentially acquiring Bridge, Stripe aims to strengthen its position in the stablecoin sector and enhance its capabilities in facilitating efficient global transactions.
Other financial institutions, such as Visa, are also exploring opportunities in the stablecoin space. Visa announced a platform for banks to issue fiat-backed tokens, while companies like Revolut are rumored to be considering launching their own stablecoins.
Bridge has already processed over $5 billion in annualized payment volume and has reputable clients like SpaceX, Coinbase, and Stellar. The company focuses on simplifying global money movement for both crypto-native and traditional firms by offering solutions that streamline stablecoin functionality.
Although Stripe has been a potential candidate for an initial public offering, the company’s founders have not announced any immediate plans to go public. Earlier this year, Stripe and investors bought back more than $1 billion in shares from employees, valuing the company at $65 billion, down from a peak of nearly $100 billion in 2021.
The potential acquisition of Bridge by Stripe demonstrates a strategic shift towards expanding payment services to include stablecoins, positioning the company as a leader among web 2.0 companies in the digital payments landscape. This move signifies Stripe’s deeper commitment to embracing stablecoin technology and enhancing its capabilities in facilitating faster and more efficient global transactions in the evolving digital economy.