Payment processing giant Stripe has finalized a monumental $1.1 billion acquisition of the stablecoin platform Bridge, as reported by TechCrunch founder Michael Arrington. This deal marks a significant expansion for Stripe into the cryptocurrency domain, particularly in stablecoin operations, enhancing its capabilities in digital currency transactions.
Information regarding the acquisition surfaced on October 17, indicating that negotiations were nearing completion. Michael Arrington confirmed the completion of the deal on October 20 via an X post, simply stating, “This deal is done. $1.1b.” This acquisition is not only the largest in Stripe’s history but also ranks as one of the most substantial in the crypto industry to date.
Founded in San Francisco and Dublin, Stripe has grown to become a leading name in online payment processing, supporting businesses globally with credit, debit, and other forms of digital payments. In July, Stripe was valued at an impressive $70 billion. By March 2023, the company celebrated a significant milestone, processing over $1 trillion in total payment volume for the year, which accounts for approximately 1% of the global gross domestic product (GDP).
Stripe’s Foray into Crypto Payments
The acquisition comes shortly after Stripe’s co-founder, John Collison, announced in March that the company would begin supporting global stablecoin payments during the summer. This strategic move was followed by the integration of the Circle USD (USDC) stablecoin into Stripe’s main payment interface, signaling a robust push into the stablecoin sector.
Bridge, established in 2022 by former Coinbase executives Zach Abrams and Sean Yu, operates a stablecoin-based payments network aimed at competing with traditional financial networks like SWIFT and conventional credit card systems. The platform facilitates the creation, storage, transmission, and acceptance of stablecoins, positioning itself as a Web3 counterpart to Stripe. Earlier in the year, Bridge attracted $58 million in funding from notable investors including Sequoia, Ribbit, and Index.
Profiles of Bridge’s Founders
Zach Abrams, prior to founding Bridge, served as the head of consumer at Coinbase and later founded Evenly, a peer-to-peer payments company that was eventually acquired by Square. Sean Yu has held significant engineering roles at major tech firms including Coinbase, Square, Doordash, and Airbnb, bringing a wealth of experience to the Bridge team.
This acquisition by Stripe not only underscores the growing integration of traditional finance with blockchain technology but also reflects the increasing acceptance of cryptocurrencies, particularly stablecoins, as legitimate and stable vehicles for financial transactions in the digital economy.
The merger between Stripe and Bridge is expected to enhance Stripe’s offerings, allowing it to provide more comprehensive services involving digital currencies. This could potentially increase the efficiency of cross-border transactions and offer businesses a broader range of payment options, thereby expanding Stripe’s customer base and operational scope.
Stripe’s acquisition of Bridge for $1.1 billion is a clear indicator of the burgeoning relationship between traditional financial services and the evolving cryptocurrency market. As Stripe integrates Bridge’s technology and expands its stablecoin capabilities, it is poised to play a pivotal role in shaping the future landscape of global digital payments.
