In a landmark acquisition, Stripe, the global payments processor, has acquired stablecoin platform Bridge for $1.1 billion. This acquisition, confirmed by Stripe and Bridge, marks Stripe’s largest acquisition to date and one of the most significant in the cryptocurrency sector.
Bridge, founded by entrepreneurs Sean Yu and Zach Abrams, has emerged as a prominent software provider for enterprises seeking to integrate stablecoin transactions into their payment systems. The acquisition comes as Stripe re-enters the cryptocurrency space, six years after ceasing its prior crypto services. Earlier this year, Stripe announced the reintroduction of stablecoin payment options, facilitating instant on-chain settlement and automatic fiat conversion through its platform, positioning itself at the forefront of digital asset payments.
This acquisition is a strategic response to the rising global demand for seamless, cost-effective cross-border payments. By leveraging stablecoins, Stripe is tackling the high fees and lengthy settlement times typically associated with international remittances, allowing individuals to send and receive funds quickly and affordably across borders. According to a recent report by investment bank Architect Partners, US dollar-denominated stablecoins on blockchain rails are currently the most cost-efficient method for cross-border payments, with transaction fees as low as 1-2 basis points.
Earlier this month, Stripe made headlines with the integration of Circle’s US Dollar Coin (USDC) on its primary user interface, enabling stablecoin transactions in over 70 countries. The integration witnessed significant uptake, particularly in regions with high remittance volumes, further underscoring stablecoins’ utility as a stable, efficient cross-border payment solution. Stripe’s acquisition of Bridge strengthens its position in this rapidly growing sector, following the company’s previous integration of Paxos’s stablecoin API, which supports payment service providers in embedding stablecoin capabilities into their own systems.
The acquisition also reflects broader trends in the financial technology sector, where stablecoins are seen as a viable alternative to traditional banking for cross-border payments. Research from Bernstein notes that with improvements in blockchain scalability, stablecoins have become the leading use case for blockchain technology, particularly in the context of cross-border payments. Analysts argue that Bridge’s acquisition not only validates stablecoins’ growing role in mainstream payments but also exemplifies the disruptive potential of blockchain-based financial services in challenging traditional finance.
This acquisition coincides with Stripe’s recent partnership with Coinbase in June, wherein Stripe enabled crypto onramps and offramps on Coinbase’s platform. Through this partnership, Stripe integrated the Base layer-2 network, adding further functionality to its crypto offerings.
For Bridge’s founders, Yu and Abrams, this acquisition represents their second successful exit, having previously sold their payment venture Evenly to Block (then Square) in 2013. Abrams, notably, held senior roles at Coinbase before co-founding Bridge, bringing a wealth of experience in digital assets and payments to the venture.
As Stripe continues its digital asset expansion, the acquisition of Bridge underscores the company’s commitment to shaping the future of payments by integrating stablecoin solutions, reducing reliance on traditional financial systems, and enhancing transaction efficiency for users worldwide. With Stripe’s estimated market valuation of $70 billion, the company’s stablecoin offering stands to become a formidable force in global digital finance, solidifying its position as a leading player in the convergence of traditional and digital payment infrastructures.
