Stripe, the global payment processing giant, has reportedly acquired the stablecoin platform Bridge in a $1.1 billion deal, marking the largest acquisition in the crypto industry. TechCrunch founder Michael Arrington confirmed the acquisition, which had been in advanced discussions since at least October 17.
In an X post, he wrote:
This deal is done. $1.1b.
– Michael Arrington
Both companies still have yet to comment publicly.
Stripe plans to enhance stablecoin integration
This deal marks Stripe’s largest acquisition to date and is one of the biggest in the crypto industry’s history. Stripe, valued at $70 billion as of July, continues expanding its presence in digital payments. In March 2023, the company surpassed $1 trillion in total payment volume, accounting for roughly 1% of the global GDP through businesses using its platform.
The acquisition follows Stripe’s recent strides in stablecoin payments, including the integration of Circle USD (USDC) stablecoin into its payment interface. This comes just six months after co-founder John Collison announced that the company would support global stablecoin transactions.
Earlier this month, the company introduced a new “Pay with Crypto” feature, integrating stablecoins into its customer checkout options with a 1.5% transaction fee. Stripe’s president, Will Gaybrick, emphasized the potential of stablecoins to offer efficient payment solutions, particularly for consumers outside the U.S.
Bridge enables businesses to accept cross-border payments with stablecoins
Bridge offers software that enables businesses to accept cross-border payments using stablecoins, which are pegged to traditional currencies or financial instruments. With a collective market cap exceeding $170 billion, stablecoins like Tether, USDC, and Dai are becoming increasingly popular in the financial ecosystem.
The startup has already processed over $5 billion in annualized payment volume and counts significant clients, including the U.S. State Department, U.S. Treasury, SpaceX, and Coinbase.
The founders of Bridge, Zach Abrams, and Sean Yu, have notable backgrounds in the crypto and payments sectors. Before launching Bridge in 2022, they co-founded Evenly, a Venmo competitor that was sold to Block in 2013. Their extensive experience in companies like Coinbase, Brex, DoorDash, and Airbnb positions them well to lead Bridge in this competitive market.
Bridge’s integration in Stripe will likely drive further growth and adoption of stablecoin solutions, solidifying the Irish-American firm’s leadership in the fintech sector.
Source: https://www.cryptopolitan.com/stripe-acquires-bridge-in-1-1-b-deal/