According to TechCrunch founder Michael Arrington, Stripe has made its largest acquisition to date, buying the stablecoin platform Bridge for a whopping $1.1 billion. This is not only Stripe’s biggest deal, but also one of the largest acquisitions in Web3 history.
This acquisition comes shortly after Stripe’s October launch of support for USDC payments, allowing users from over 150 countries to pay with stablecoins on Ethereum, Solana, and Polygon blockchains.
In August, Bridge had announced the completion of a $58 million funding round with support from leading investors including Sequoia Capital, Ribbit Capital, Index Ventures, Haun Ventures, and 1confirmation.
Bridge, which has been in development for more than two years, was founded by two entrepreneurs with extensive experience in fintech. CEO Zach Abrams previously served as Chief Product Officer at Brex, led consumer operations at Coinbase, and was a General Manager at Square. CTO Sean Yu has held senior engineering roles at Airbnb, Coinbase, DoorDash, and Square.
Notably, this isn’t the first time the two co-founders have collaborated. In 2012, they founded Evenly, a peer-to-peer payments platform designed to simplify payments between friends. Evenly was acquired by Square in 2013, proving their innovative capabilities in the payments sector.
Bridge: The Web3 Version of Stripe
Bridge has often been referred to as the “Web3 version of Stripe.” The platform offers simple, easy-to-use APIs that help businesses overcome the hurdles of adopting stablecoins, making stablecoin transfers and acceptance more accessible and cost-effective. Whether it’s integrating stablecoin payments, helping businesses issue their own stablecoins, or enabling efficient cross-border transactions, Bridge provides a comprehensive set of solutions.
Bridge’s Orchestration API and Issuance API offer businesses and developers a seamless experience. The Orchestration API simplifies the integration of stablecoin payments by managing all regulatory, compliance, and technical complexities, while the Issuance API allows businesses to issue their own stablecoins in minutes. These companies can settle transactions in their own branded stablecoins while accepting various currencies, including USD, EUR, USDC, and USDT, with reserves that can be invested in U.S. Treasury bonds for yield.
Using Bridge’s APIs, businesses can transfer funds globally in minutes, send stablecoin payments effortlessly, and convert local currencies into stablecoins. The platform also enables global customers to maintain accounts in USD and EUR, allowing them to save and spend in these currencies.
Over $5 Billion in Annual Payments Processed by Bridge
Bridge has attracted major clients, including SpaceX, which uses Bridge to handle payments in different currencies across jurisdictions, transferring those funds to its global treasury via stablecoins. The platform has also partnered with blockchain networks like Stellar and crypto payment app Strike, providing infrastructure for their stablecoin payment services.
In addition, Coinbase has integrated Bridge’s services, supporting transfers between Tether on Tron and USDC on Base. As of now, Bridge has processed over $5 billion in annual payments.
Industry insiders report that many crypto payment companies are either using or planning to use Bridge’s services. One source mentioned talking to 25-30 crypto payment companies in recent weeks, many of which are already incorporating Bridge into their operations.
Regulatory Compliance and Global Expansion
On the compliance front, Bridge holds licenses in 48 U.S. states and has a VASP (Virtual Asset Service Provider) license in Poland. The company is in the process of applying for additional licenses in New York, Europe, and other regions.
In areas where Bridge is not yet fully compliant, it partners with local entities like Bitso to expand its reach, especially in regions such as Latin America for B2B payments.
Future Outlook
As Bridge continues to grow, the question remains: Can it lead a transformation in the stablecoin payments sector? Will it facilitate new flows of stablecoins and fiat currencies across the globe, especially in regions like Africa?
Only time will tell, but Bridge’s innovative solutions have already positioned it as a key player in the space, and its potential impact on global payments will be closely watched.
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