The news was initially revealed by TechCrunch co-founder Michael Arrington in an X post on October 20th, though neither Stripe nor Bridge has officially confirmed the acquisition as of yet.

Source: X

Bridge, founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, facilitates the creation, transfer, and storage of stablecoins. The acquisition follows Bridge’s successful $40 million funding round in August, led by Sequoia, Ribbit, and Index.

For Stripe, this acquisition aligns with its renewed focus on expanding its services in the cryptocurrency sector. The multinational payments processor initially introduced Bitcoin payments in 2014 but discontinued the offering four years later, citing low adoption rates.

However, in 2024, Stripe announced the company’s re-entry into the crypto sector with a focus on stablecoin payments. The company highlighted the growing demand for blockchain-based alternatives due to their faster transaction speeds and lower costs compared to traditional payment methods.

Source: X 

On October 15th, Stripe began accepting Circle’s USDC stablecoin in partnership with Paxos, enabling merchants across 70 countries to initiate fiat-settled stablecoin payments. Stripe has also engaged with the cryptocurrency sector through various other initiatives, such as enabling payouts for creators on X via USDC and launching a fiat-to-crypto onramp service in 2022.

The Bridge acquisition coincides with a surge in stablecoin usage, with the market capitalization of stablecoins reaching an all-time high of nearly $170 billion in the third quarter of 2024. Experts predict this market could reach $3 trillion by 2030.

Several traditional financial platforms have recently ventured into the stablecoin market. In early October, Visa launched a platform allowing banks to issue fiat-backed stablecoins, citing observations that stablecoin transaction volumes were approaching levels seen in traditional payment networks. PayPal also entered the stablecoin market last year with the launch of PayPal USD (PYUSD) on Ethereum, aiming to enable lower-cost transfers without intermediaries.

The acquisition of Bridge positions Stripe to compete more effectively with other fintech companies expanding into the stablecoin market and highlights the growing convergence between traditional financial systems and blockchain technology. Analysts see this acquisition as a strong signal of the increasing adoption of stablecoins as a mainstream payment method.

Stripe, valued at approximately $70 billion, has been actively expanding its presence in digital payments. It achieved a significant milestone earlier this year by surpassing $1 trillion in total payment volume. By integrating Bridge’s expertise in stablecoin technology, Stripe aims to further enhance its digital payment infrastructure and capitalize on the evolving financial landscape, solidifying its position as a leader in the fintech industry.

This week, Tether’s US dollar-backed stablecoin, USDT, hit a record market cap of $120 billion, a potential catalyst for a bull market.

As the largest stablecoin by market capitalization, Tether surpassed the $120 billion mark on October 20. Stablecoins like Tether play a crucial role in bridging fiat currencies and digital assets. When the supply of stablecoins increases, it often signals an upcoming bull market, suggesting that investors are ready to buy digital assets.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

77 +