Stripe negotiating the acquisition of stablecoin platform Bridge

Global payments major Stripe is in advanced talks to buy Bridge, a fintech platform specialising in stablecoin solutions, for a staggering $1 billion. The growing significance of stablecoins in global finance is said to be a key reason behind Stripe’s interest in Bridge.

Stripe has made it clear that crypto is a huge priority for the company. In July, Stripe allowed cryptocurrency purchases in the EU, and earlier this month, it introduced a Pay with Crypto feature that enables merchants to accept stablecoins.

For Stripe, this possible acquisition fits into its larger strategy of incorporating stablecoins into its platform. Earlier this year, Stripe made a return to the crypto market, allowing merchants to accept stablecoins after a six-year absence.

This decision highlighted the company’s confidence in the usefulness of stablecoins for facilitating quicker and more efficient transactions, especially in areas with unstable local currencies or where traditional cross-border payment methods are difficult.

Bridge, co-founded by Coinbase alumni Zach Abrams and Sean Yu, has built an API that helps companies accept stablecoins. The pair raised $58 million from investors such as Index Ventures and Sequoia Capital.

Bridge’s solutions for stablecoin payments align well with Stripe’s payment processing services. Both companies serve a similar clientele—businesses seeking efficient payment infrastructures. By acquiring Bridge, Stripe could enhance its stablecoin capabilities and provide improved global payment solutions to its customers.

If the deal gets finalised, the acquisition would enable Stripe to secure a larger share of the rapidly expanding stablecoin market. This sector has seen substantial growth, even in the face of challenges like the collapse of TerraUSD in 2022. Stablecoins have made a strong recovery, with Tether, for example, reporting a profit of $5.2 billion in the first half of 2024.

With competition growing in the stablecoin arena—thanks to companies like Visa and Robinhood launching their own tokens—Stripe’s acquisition of Bridge could signify a major step forward in its efforts to integrate crypto payments and position itself as a leader in this fast-evolving financial environment.