Payments giant Stripe has officially acquired the stablecoin platform Bridge in a landmark transaction valued at $1.1 billion, marking the largest acquisition in the cryptocurrency industry to date.
The news was confirmed by TechCrunch founder Michael Arrington through a post on X (formerly Twitter), who disclosed Stripe’s expanding commitment to integrating cryptocurrency solutions into its payment processing services.
Bridge specializes in providing infrastructure that enables businesses to accept payments in stablecoins, positioning Stripe to enhance its offerings in the growing digital asset space. This move aligns with Stripe’s strategy to capitalize on the increasing adoption of cryptocurrencies for everyday transactions.
The stablecoin market has seen explosive growth, with a collective market cap exceeding $170 billion. By acquiring Bridge, Stripe aims to tap into this burgeoning market and provide businesses with efficient payment solutions that leverage stablecoins like USDC and Tether.
Founded by entrepreneurs Zach Abrams and Sean Yu, Bridge has previously raised $58 million in funding and established a strong customer base that includes notable companies such as SpaceX and Coinbase. The startup’s technology facilitates faster and cheaper cross-border payments using stablecoins, which could significantly enhance Stripe’s capabilities in handling global transactions.
Before launching Bridge, Abrams and Yu developed a Venmo competitor called Evenly, which was sold to Block (formerly Square) in 2013. Their experience in fintech positions them well to lead Bridge into its next phase under Stripe’s umbrella.
This acquisition represents a pivotal moment for Stripe as it re-enters the cryptocurrency space after halting crypto payments in 2018 due to technical challenges and high transaction fees. Recently, Stripe has been actively investing in crypto-related initiatives; “In June 2024, Stripe partnered with Coinbase to enable fiat-to-crypto onramps and offramps, enhancing user experience across both platforms. In October 2024, Stripe launched a new “Pay with Crypto” feature that integrates stablecoins into its customer checkout offerings, reflecting growing demand for tokenized fiat currencies.”