Stripe to Acquire Bridge for Stablecoin Expansion: What to Expect

Stripe Acquisition of Bridge to Enhance Stablecoin Transactions

Global payment processing giant Stripe is reportedly in advanced discussions to acquire Bridge, a Sequoia-backed firm specializing in stablecoin transactions. This move indicates Stripe’s deepening involvement in the digital currency and blockchain sectors, signaling a significant shift in its payment services strategy.

Stripe's Renewed Crypto Focus

Although a final decision has yet to be made, and the deal could still fall through, Bloomberg reported that the negotiations are progressing. The acquisition would mark a notable development in Stripe’s approach to cryptocurrency, particularly stablecoins like USDC and USDT.

• History with Crypto: Stripe was one of the early adopters of crypto, becoming the first major payment company to support Bitcoin in 2014. However, it ceased this service in 2018 due to issues like long transaction times and high fees. Last week, after a six-year hiatus, Stripe reintroduced crypto payments for U.S. businesses using Circle’s USDC on Ethereum, Solana, and Polygon networks.

• Recent Integrations: This isn’t Stripe’s first recent crypto integration. In July, its EU arm enabled online vendors to add a widget for purchasing cryptocurrencies like BTC, ETH, and SOL. Additionally, in June, Stripe partnered with Coinbase to incorporate the crypto exchange's Layer 2 network, Base, into its payout products.

Bridge: Revolutionizing Global Payments with Stablecoin Integration

Bridge, co-founded by former executives from Square and Coinbase, has developed a global payment network integrating stablecoins into the traditional financial system. Based in Texas, the firm aims to streamline cross-border payments, payouts, and foreign currency exchanges for businesses. In August, Bridge raised $58 million from investors including Sequoia, Ribbit, Index, and Haun Ventures. 

Partnering with Bitso, Bridge facilitates business-to-business cross-border payments via stablecoin rails in Latin America. Processing over $5 billion in annualized payment volume, Bridge counts SpaceX, Coinbase, Stellar, and Strike among its clients. Stripe's acquisition of Bridge aligns with its goal to enhance stablecoin transaction capabilities, providing faster and more efficient global transactions. 

This move follows other financial institutions exploring stablecoin opportunities, with Visa and Revolut making strides in this sector. While Stripe is seen as a potential IPO candidate, the company has no immediate plans to go public, having recently bought back over $1 billion in shares, valuing it at $65 billion.

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