Payments giant Stripe has made a significant move into the stablecoin market by acquiring Bridge for a total of $1.1 billion, more than five times its $200 million valuation. The acquisition aims to grow the adoption of stablecoins to make money easier to move, store, and spend globally. Bridge, a stablecoin platform, received $58 million in a private fundraising round in August and offers infrastructure to issue and move tokenized money on different blockchains.
Stripe, which processed over $1 trillion in total payment volume in 2023, is the second largest payment processing technology with a 17% market share. The acquisition of Bridge is expected to “turbocharge” the stablecoin space, according to experts like Nic Carter and Jeremy Allaire. Stablecoins have been gaining mainstream acceptance, with transactions amounting to $8.5 trillion in the second quarter, representing 32% of all crypto usage activity.
Stablecoins have become increasingly popular in both the crypto industry and mainstream finance. Companies like Revolut are rumored to be launching their stablecoin, while Visa has announced a platform to help banks issue their fiat-backed tokens. Thailand’s Siam Commercial Bank has also embraced the usage of stablecoins to process cross-border payments. The growing adoption of stablecoins is seen as a solution to critical financial problems and is aimed at making money easier to move, more economical to hold, and cheaper to send in a globalized economy.
The acquisition of Bridge by Stripe comes after rumors of the deal surfaced on Oct. 17, with the deal being officially closed on October 20. Bridge has supported government initiatives and counts companies like SpaceX, Coinbase, and Stellar among its clients. The stablecoin platform noted that Stripe shares its vision that stablecoins can have a profound impact globally, emphasizing that stablecoins are not just about “crypto” but are about solving real-world problems in the global economy.
Industry experts believe that the acquisition of Bridge by Stripe will further drive the adoption and growth of stablecoins. With stablecoins gaining mainstream acceptance and transactions surpassing traditional payment processors like Visa, the future looks bright for stablecoins. Companies like Stripe and Bridge are at the forefront of this movement, aiming to make money easier to move and transact globally. The collaboration between these two giants is expected to bring about significant advancements in the stablecoin space, leading to faster, more efficient, and cost-effective cross-border transactions.
