Payment processing giant Stripe is reportedly in the final stages of talks to acquire Bridge, a Sequoia-backed company that focuses on moving money using stablecoins, with a potential deal valued at around $1 billion.
If finalized, this acquisition would mark Stripe’s largest to date. The deal, however, is not yet certain, as both parties could still withdraw, according to Bloomberg.
Bridge, co-founded by former executives from Square and Coinbase, integrates stablecoins like USDC and USDT into traditional financial systems, enabling cross-border payments and currency exchanges. The Texas-based firm has gained traction through partnerships like the one with Bitso for business-to-business payments in Latin America.
Stripe initially became a leader in the crypto space when it introduced Bitcoin payment support in 2014. However, it discontinued the feature in 2018, citing declining demand, long transaction times, higher fees, and price volatility. The company reintroduced crypto payments last week, supporting USDC stablecoin transactions on Ethereum, Solana, and Polygon networks.
Paxos also announced that Stripe will be the first PSP to integrate its new enterprise-grade stablecoin payments platform. Stripe’s “Pay with Crypto” product, which enables businesses to accept stablecoin payments, will feature Paxos’ technology, allowing these payments to settle in fiat currencies such as the U.S. dollar.
Stripe already supports pay-ins from over 70 countries, and the inclusion of stablecoin payments will enable businesses to accept payments from anywhere globally.
Additionally, Stripe has been integrating crypto services in recent months, including collaborations with Coinbase and the launch of crypto purchasing options for European vendors.
Bridge recently secured $58 million in funding from investors like Sequoia and Ribbit, reflecting the increasing interest in stablecoin-based payment solutions.
The stablecoin market has seen rapid growth, with a total market value surpassing $170 billion in September 2024. Major players like Tether (USDT), Circle (USDC), and PayPal (PYUSD) continue to dominate the space.
