Why Stripe is Investing $1B in Bridge to Drive Stablecoin Payments

• Stripe aims to boost stablecoin integration via its potential $1B acquisition of Bridge.  
• Bridge’s API tech enhances Stripe’s crypto payments, aligning with its stablecoin ambitions.  
• Stablecoins offer Stripe instant settlement and low fees, key to its broad expansion system.

Stripe is reportedly in the final stages of negotiations to acquire Bridge for $1 billion. Sources close to the matter say that while the deal is not yet finalized, the acquisition would be Stripe’s largest to date, furthering its efforts to include stablecoin payments on its platform.

Stripe has been busy adding stablecoins to its payment services, cementing its position at the forefront of crypto adoption in the fintech industry. Earlier this month, Stripe launched a “Pay with Crypto” feature that allows merchants to accept stablecoins at a 1.5% transaction fee.

Stripe President Will Gaybrick hinted at the potential of stablecoins, noting they could offer a more efficient payment method. Gaybrick also said that Stripe believes the most beneficial application for crypto is simply as a more useful form of money.

When asked about the potential acquisition of Bridge, Gaybrick did not confirm the deal but emphasized that Stripe is exploring investments in stablecoin technology.

Bridge’s Rise and Potential Partnership with Stripe

Co-founded by Zach Abrams and Sean Yu, Bridge has quickly become a key player in the stablecoin payments ecosystem. The startup offers an API that allows firms to accept stablecoin payments.

Prior to the acquisition rumors, Bridge raised $58 million from investors, including Index Ventures and Sequoia Capital, reaching a $200 million valuation during its Series A round.

The starup’s co-founders are former Coinbase employees with a strong background in fintech and previous experience at companies like Brex, DoorDash, and Block. This deal would bolster Stripe’s crypto offerings and provide the company with robust API solutions for stablecoin transactions.

Expanding Crypto Payments for Stripe

Stripe’s renewed focus on crypto assets comes after its earlier foray into Bitcoin payments, which it abandoned in 2018 because of technical challenges such as high fees and slow approval.

Read also: Stripe to Debut Support for Global Stablecoin Payments This Summer

In addition, stablecoins could potentially solve many of these issues by offering instant settlement and lower transaction costs. If the acquisition is finalized, it would likely help Stripe expand stablecoin payments to its international clientele.