Stripe, a prominent payments company, has completed the acquisition of the stablecoin platform Bridge in a landmark deal valued at $1.1 billion, as reported by TechCrunch founder Michael Arrington. This transaction stands as the most significant acquisition within the cryptocurrency sector to date.
Michael Arrington confirmed the completion of the deal via a tweet on October 20, 2024:
The acquisition will enable Stripe to integrate Bridge’s cutting-edge software tools into its services, allowing businesses to seamlessly process stablecoin payments. Bridge, established in 2022 by Sean Yu and Zach Abrams, offers a platform tailored for companies to efficiently handle stablecoin transactions.
With a valuation of $70 billion as of July 2023, Stripe is keen on expanding its payment solutions, especially to meet the increasing demand for cryptocurrency-related services.
Bridge’s platform was conceived as a competitor to traditional payment networks such as SWIFT and conventional credit card systems. It empowers businesses to generate, store, transmit, and accept stablecoins, providing a practical alternative for entities eager to leverage the advantages of digital currencies.
Bridge’s system addresses common issues found in traditional payment methods, including high fees and prolonged transaction times, by facilitating the acceptance of stablecoin payments.
Before their venture with Bridge, co-founders Sean Yu and Zach Abrams had previously co-founded Evenly, a peer-to-peer payment service that was acquired by Block (formerly Square) in 2013. Abrams has also served in senior positions at Coinbase as the Head of Consumer, while Yu has garnered engineering experience at renowned companies such as Coinbase, Square, DoorDash, and Airbnb.
Bridge had successfully raised $58 million from investors like Sequoia, Ribbit, and Index Ventures, with its latest funding round placing the company’s valuation at approximately $200 million. The acquisition price of $1.1 billion by Stripe indicates a substantial increase in Bridge’s valuation.
Stripe has consistently led the way in payment processing, facilitating online credit and debit card transactions for businesses. The company recently celebrated surpassing $1 trillion in total payment volume for the year 2023, accounting for roughly 1% of the global GDP.
This strategic move by Stripe follows shortly after co-founder John Collison’s announcement of the company’s intention to support global stablecoin payments starting in the summer. Stripe has also started to incorporate stablecoin payments into its platform, enabling businesses to conduct transactions using Circle’s USD Coin (USDC).
