Fintech giant Stripe has officially acquired Bridge, a startup specializing in stablecoin infrastructure, for $1.1 billion. This marks Stripe’s largest acquisition to date and a significant step toward reentering the crypto space after previously withdrawing from Bitcoin payments in 2018, CNBC reported.
The deal gives Stripe a strong foothold in the stablecoin market. Bridge’s expertise in stablecoin payments will help Stripe integrate fast, low-cost digital transactions into its existing payment network, making crypto transactions more accessible for businesses worldwide.
From a Roundtable Discussion to a Billion-Dollar Deal
The acquisition traces its origins to a casual fintech roundtable at Stripe’s headquarters last summer, where executives from various financial firms, including Stripe CEO Patrick Collison and Bridge co-founder Zach Abrams, met to discuss industry challenges.
What was supposed to be a general discussion took an unexpected turn when the conversation shifted almost entirely to stablecoins.
According to Abrams, whose company was the only stablecoin-focused firm in the room, the overwhelming interest in the topic made it clear that stablecoins were becoming a major focus for the financial industry.
“It was shocking to me,” Abrams recalled. “The group spent 90-plus% of the meeting talking about stablecoins—even though we were the only stablecoin company there.”
That discussion put Bridge on Stripe’s radar, eventually leading to acquisition talks.
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Why Stripe Is Betting Big on Stablecoins
Bridge, founded in 2022, has quickly established itself as a leader in stablecoin payments, helping businesses accept stablecoin transactions without directly handling digital tokens. Its clients include Coinbase and SpaceX, reflecting its credibility in the industry.
Stablecoins, which are pegged to real-world assets like the U.S. dollar, are gaining adoption across legacy banks and fintech startups. Their ability to reduce transaction costs and speed up cross-border payments has made them a compelling alternative to traditional digital payment systems.
A report from Standard Chartered predicts that stablecoins could account for 10% of global foreign exchange transactions shortly, up from just 1% today. This growing potential made Bridge a strategic acquisition for Stripe.
Stripe’s Second Attempt at Crypto
This acquisition marks Stripe’s second major attempt at crypto payments. One of the first significant fintech firms to accept Bitcoin payments was Stripe in 2014, however, the company discontinued the service in 2018 due to scalability problems and expensive transaction costs.
Despite that setback, Stripe has remained optimistic about the future of digital currencies. With Bridge’s expertise, Stripe now has a second chance to make crypto payments work.
Bridge’s Rapid Rise Before Acquisition
Before being acquired, Bridge had already built a strong reputation in the industry. The company secured $58 million in funding from investors and was valued at $200 million after raising $40 million in a Series A round.
Now, as part of Stripe, Bridge’s 60-person team has officially joined the company. On Tuesday, they gathered in San Francisco for onboarding, where they were introduced to Stripe’s work culture and business operations.
More than merely a commercial transaction, Stripe’s $1.1 billion acquisition of Bridge is a calculated move that may revolutionise the use of stablecoins in international payments. As stablecoins continue to gain mainstream acceptance, Stripe’s entry into the market could accelerate its role in digital finance.
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