Summary
Stripe has reportedly accomplished acquisition of stable platform Bridge for $1.1 billion, as per the post done by TechCrunch co-founder Michael Arrington. However, the actual companies have yet to make an official statement.
Deal Confirmed, No Official Announcement Yet
The acquisition of Bridge, founded by former coinbase executives Zach Abrams and Sean Yu in 2022, follows alleged report from last week that the company were in final stage of negotiations. However, neither Stripe nor Bridge have released any official statement except X (formerly twitter) post by Michael Arrington.
Bridge’s Role in Stablecoin Market
Bridge provides further features and facilities such as creation, transfer and storage of stablecoins making the system smoother for Stripe. A $40 million funding round for bridge was conducted in August which was conducted by major investing companies like Sequoia and Ribbit, which was followed by the negotiation deal.
Stripe’s Growing Crypto Ambitions
Stripe’s acquisition of Bridge fits its strategy to re-enter the crypto sector. After first introducing Bitcoin payments in 2014 and discontinuing them four years later, Stripe re-entered the market with stablecoin payments in 2024, citing demand for faster and cheaper blockchain transactions.
Rising Demand for Stablecoins
The use of Stablecoin is continously growing, reaching a market height of $173 billion in Q3 2024. This initiative positions Stripe on a favourable position to capitalize on the booming market, which has potential of hitting $3 trillion by 2030. Traditional Financial giants like Paypal and Visa have also started to enter this digital space.