In a landmark move, payments giant Stripe has announced the acquisition of stablecoin platform Bridge for a reported $1.1 billion. This deal, one of the largest in crypto history, follows Stripe’s recent announcement of stablecoin support earlier this month.
Stripe CEO Patrick Collison confirmed the acquisition in a tweet, stating that “Stablecoins are room-temperature superconductors for financial services” and that “Stripe is going to build the world’s best stablecoin infrastructure” by welcoming Bridge to the Stripe family.
Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar. This stability makes them attractive for use in payments and financial applications, as they avoid the volatility often associated with other cryptocurrencies.
Founded in 2022 by Coinbase alumni, Bridge provides a software platform that allows businesses to accept stablecoin payments. The company claims to have processed an annual payment volume of $5 billion since launch, with clients including SpaceX.
The acquisition is subject to regulatory approval and is expected to close in the coming months. If the reported $1.1 billion figure is accurate, this deal would surpass other major crypto acquisitions, such as CoinShares’ $530 million purchase of Valkyrie Funds and Robinhood’s $200 million acquisition of Bitstamp.
For Stripe, the move represents a significant push into the world of stablecoin payments. The company had previously abandoned crypto support in 2018 due to issues around transaction speeds and high costs, but has now re-entered the crypto space with the introduction of “Pay with Crypto” earlier this month, enabling businesses to accept USDC payments.
While USDC is currently the most widely used stablecoin, there are other alternatives, such as Tether (USDT), Dai, and TerraUSD. These stablecoins use different mechanisms to maintain their peg, with some being fully collateralized by fiat reserves and others using algorithmic approaches.
It remains unclear whether Bridge will be integrated into Stripe’s existing platform or operated separately. However, the deal underscores Stripe’s belief in the transformative potential of stablecoins and its commitment to building the infrastructure to support their widespread adoption.
As the crypto industry continues to evolve, this acquisition highlights the growing interest from traditional finance players in the stablecoin space. It will be fascinating to see how Stripe’s stablecoin strategy unfolds and the impact it has on the broader payments landscape.
Coolcaesar, CC BY-SA 4.0, via Wikimedia Commons
