Payments giant Stripe has officially acquired stablecoin platform Bridge in a landmark deal valued at $1.1 billion.
Confirmation of the acquisition came from industry sources on October 20, though neither company has yet issued an official statement regarding the transaction.
Just days prior, ECNETNews had reported that Stripe and Bridge were in the final stages of negotiations, though details were undisclosed at that time.
Founded in 2022 by former executives from Coinbase, Bridge specializes in facilitating the creation, transfer, and storage of stablecoins. This acquisition follows a significant $40 million funding round in August led by prominent venture capital firms.
This strategic investment aligns with Stripe’s ambition to broaden its services within the cryptocurrency sector. Previously, Stripe introduced Bitcoin payments in 2014 but ended the service in 2018 due to limited demand.
In early 2024, John Collison, Stripe’s president, announced the company’s renewed focus on the crypto space, particularly through stablecoin payments—a response to increasing demand for faster and more cost-effective blockchain-based transaction methods.
Stablecoins are digital currencies designed to maintain stable values, typically pegged to assets like the U.S. dollar. Their stability makes them ideal for everyday transactions.
As of October 15, Stripe began accepting Circle’s USDC stablecoin in a partnership with Paxos, enabling merchants in 70 countries to process fiat-settled stablecoin transactions.
Stripe has previously engaged with the crypto market, introducing payouts for creators via USDC and launching a fiat-to-crypto onramp service in 2022.
Rising Demand for Stablecoins
The acquisition of Bridge comes at a time of heightened stablecoin usage, which has reached a record market capitalization of nearly $170 billion in Q3 2024. Analysts project that the stablecoin market could soar to $3 trillion by 2030.
In response to this growing trend, traditional financial institutions are now entering the stablecoin arena. For instance, Visa recently launched a platform enabling banks to issue fiat-backed stablecoins in light of rising transaction volumes nearing those of conventional payment networks.
Additionally, PayPal has made strides in the stablecoin space with the launch of PayPal USD (PYUSD) on Ethereum, aimed at facilitating low-cost transfers without intermediary involvement. The stablecoin’s market cap has grown to over $627 million, demonstrating significant market penetration.
