Stripe Plans to Acquire Stablecoin Payment Platform Bridge
Date: 2024-10-17 Author: Oliver Abernathy Categories: BUSINESS
According to Bloomberg, the discussions are at an advanced stage, but no final agreement has been reached yet, and both parties may back out of the deal.
Texas-based Bridge offers solutions for stablecoins such as USDT and USDC, focusing on developing an innovative payment network. The company’s clients include well-known brands such as SpaceX, Stellar, and Stripe itself. This year, Bridge has raised $58 million in funding from Sequoia, Ribbit, and Index.
If the deal goes through, it will strengthen Stripe’s position in the crypto payments space. The company has re-entered the crypto space in 2022, offering its customers USDC stablecoin payments through the Polygon network. Twitter was its first customer. In 2024, Stripe expanded USDC support to the Solana, Ethereum, and Polygon blockchains, and joined the Paxos network, making it the first payment service provider to integrate Paxos’ enterprise infrastructure.
The Stablecoin Market Evolves
Despite increased regulation following the TerraUSD collapse in 2022, the stablecoin market continues to attract the attention of financial firms. Their success, especially Tether, which made $5.2 billion in profit in the first half of 2024, makes stablecoins popular for both savings and payments.
Tether and Circle currently hold the leading positions, but competition is heating up. Large companies such as Robinhood and Visa have already announced plans to issue their own stablecoins. Ripple Labs’ RLUSD will also hit the market by the end of the year.
Additionally, new cryptocurrency regulations, such as the EU’s MiCA, could have a significant impact on the stablecoin market. These changes will provide new opportunities for companies that are compliant and create obstacles for those who are not prepared for the new conditions.
