Stripe Acquires Bridge Reinforces Stablecoin Use for Cheaper Global Payments
TechCrunch founder Michael Arrington wrote on X on Sunday that payments processor Stripe has completed an agreement to purchase stablecoin platform Bridge for $1.1 billion. Both businesses later verified the deal. The use of stablecoins for public blockchains is validated by Stripe’s acquisition of Bridge, according to a research paper released by broker Bernstein on Tuesday. Stablecoins denominated in US dollars on crypto rails are now the least expensive way to make cross-border payments, costing just 1-2 basis points, according to the analysis.
With improvements in blockchain scalability, stablecoins have emerged as the leading use case for blockchains, particularly for cross-border payments,
analysts led by Gautam Chhugani
Bridge Acquisition by Stripe Underscores Rising Threat to Traditional Finance, Says Analysts
The Bridge deal, according to Bernstein, is the biggest cryptocurrency acquisition made by a significant payments company to date. According to the authors, companies like Bridge are crucial because they develop API software that enables companies to include stablecoin payments in their standard payment processes.
Investment bank Architect Partners stated in research on Monday that this transaction demonstrates the increasing acceptance of stablecoin-based payments and its alluring advantages, pointing out that non-crypto companies are increasingly using these coins. According to the analysis, it’s difficult to imagine a greater disruptive threat to the TradFi financial system than large-scale payments made without a bank’s assistance.
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