Key takeaways
- Stripe is in advanced discussions to acquire Bridge, a platform specializing in stablecoin transactions.
- The deal could significantly improve Stripe’s capabilities in the stablecoin sector.
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Stripe, the privately held payments giant, is in talks to strike a deal to acquire Bridge, a stablecoin payments platform founded by Coinbase alumnus Sean Yu, Bloomberg reported on Wednesday.
Sources familiar with the matter indicate that discussions are at an advanced stage, although no agreement has been finalized. Both sides could still walk away from negotiations.
Bridge, based in San Antonio, Texas, specializes in managing stablecoins like USDT and USDC. It aims to build a payment network that challenges traditional systems.
Bridge’s list of customers and partners includes high-profile names such as SpaceX, Stellar and Stripe. The company recently secured $58 million in funding from high-profile investors including Sequoia, Ribbit and Index.
If completed, the acquisition could strengthen Stripe’s recent reentry into the stablecoin payments space.
The company made its return to the crypto market in 2022, starting to enable USDC payments on Polygon, with Twitter as its initial client. Earlier this year, it gave the green light to USDC stablecoin payments on the Solana, Ethereum, and Polygon networks.
Stripe recently joined Paxos’ stablecoin network, becoming the first payment service provider (PSP) to integrate Paxos’ new enterprise infrastructure into its system.
Growing interest in the stablecoin market
The stablecoin market has come under increasing regulatory scrutiny since the collapse of TerraUSD in 2022. It nevertheless continues to grow and is one of the most promising areas for fintech players to exploit.
The financial success of existing stablecoin issuers, like Tether, is one of the main motivating factors. Tether saw its profits climb to $5.2 billion in the first half of 2024. Beyond the profit potential, stablecoins are increasingly used for savings and payments in various markets.
Tether and Circle currently hold the majority of market share, but they will soon face stiff competition as major companies like Robinhood and Visa have revealed plans to launch their stablecoins. Ripple Labs, a major blockchain player, is also expected to officially roll out its RLUSD stablecoin by the end of this year.
On the regulatory front, the impending implementation of regulations, such as the European Union’s Markets in Crypto-Asset (MiCA) framework, is expected to reshape the stablecoin sector. These could challenge the position of players who do not follow the rules, but at the same time create an opportunity for new entrants.
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