Payment Processing Giant Stripe Expands into Crypto with Bridge Acquisition
Stripe Acquires Bridge – Payment processing giant Stripe has reportedly acquired the stablecoin platform Bridge in a deal valued at $1.1 billion, according to Michael Arrington, founder of TechCrunch. The acquisition marks a significant milestone for Stripe, which is headquartered in San Francisco and Dublin, and was valued at $70 billion in July.
Details of the Deal
On October 17, reports indicated that the acquisition was in “advanced stages,” although representatives from both companies had yet to confirm the deal publicly. Arrington took to X (formerly Twitter) on October 20 to assert, “This deal is done. $1.1b.” However, he did not provide further details about the acquisition.
If finalized, this acquisition would not only be Stripe’s largest to date but also one of the most significant acquisitions in crypto history. Stripe is known for its payment processing services that enable businesses to accept credit and debit cards as well as other online payments. In March, the company announced it had surpassed the $1 trillion mark in total payment volume for 2023, accounting for roughly 1% of global gross domestic product (GDP).
Recent Developments Leading to the Acquisition
This reported acquisition comes on the heels of co-founder John Collison announcing in March that Stripe would begin supporting global stablecoin payments “this summer.” Just weeks before this acquisition news, Stripe integrated Circle USD (USDC) stablecoin into its main payment interface, allowing users to make stablecoin payments more seamlessly.
Bridge: A New Player in Stablecoin Payments
Founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, Bridge is designed to compete with traditional payment networks like SWIFT and credit card systems. Abrams previously served as the head of consumer at Coinbase and founded Evenly, a P2P payments company that was later acquired by Square. Yu has held engineering positions at notable companies such as Coinbase, Square, DoorDash, and Airbnb.
Bridge aims to empower businesses by providing a platform for creating, storing, sending, and accepting stablecoins, often referred to as the Web3 answer to Stripe. This year, Bridge successfully raised $58 million in funding from prominent investors including Sequoia, Ribbit, and Index.
FAQ
Who are the founders of Bridge?
Bridge was founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu. Abrams previously led consumer efforts at Coinbase, while Yu has a strong engineering background with experience at companies like DoorDash and Airbnb.
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