Irish-American payment technology company Stripe has announced plans to explore a partnership with Bridge, a stablecoin payment platform, as part of its efforts to expand in the stablecoin payment market.
Although discussions are in progress, no formal agreements have been made. Both companies have the option to withdraw if negotiations do not move forward.
Stripe Deliberates Stablecoin Platform Bridge Acquisition
Sources told Bloomberg that Stripe is in deep talks with Bridge, a venture-backed fintech platform that helps businesses issue and accept stablecoins. Bridge’s stablecoin-focused platform enables businesses to develop, store, send, and receive stablecoins, including Tether’s USDT and Circle’s USDC.
For Bridge, this acquisition could bolster the platform’s efforts to challenge traditional systems as it continues to develop a stablecoin payments network. In August, the firm raised $58 million in funding from major investors, including but not limited to Sequoia and Index Ventures. The fundraiser’s success reflected a shared belief in the potential of stablecoins in global finance.
“Bridge, a Web3 payment firm, has secured a total of $58 million in funding since its launch. Started by former Coinbase and Square employees, the firm has backers including Sequoia, RibbitCapital, Index Ventures, and Haun Ventures. Bridge is building a stablecoin-powered money movement platform that offers services such as payouts, cross-border payments, and exchanges of foreign currencies,” Top 7 ICO reported.
Read more: What Is a Stablecoin? A Beginner’s Guide
In Stripe’s case, this potential acquisition signals strong support for stablecoins in global payment systems. To provide context, Stripe recently integrated Paxos, another stablecoin payments platform designed for payment service providers (PSPs), earlier this week.
Additionally, Stripe’s product lead, Jeff Weinstein, recently announced the reintroduction of USDC payments after a six-year hiatus. The return of the “Pay with Crypto” feature, now limited to US businesses, supports stablecoin payments across Ethereum, Solana, and Polygon networks.
The renowned interest comes from Stripe’s customer base, which is more interested in low-cost ways to reach customers. Most of these clients are in the e-commerce sector, and stablecoins are best positioned to meet this need.
“We, as a principle, do things that Internet businesses want; and they want to reach more customers at lower cost. Stablecoins, while still early, show some sign that they can help achieve that,” Bloomberg reported, citing Weinstein.
In hindsight, Stripe co-founder and President John Collison said during the company’s Global Internet Economy conference in April that “Crypto makes sense as a means of exchange.” During the speech, he articulated that improved transaction speeds and reduced fees were critical drivers behind Stripe’s interest in stablecoins.
Read more: A Guide to the Best Stablecoins in 2024
If Stripe proceeds with the acquisition of Bridge, it would further strengthen its recent push into the stablecoin payments sector. Stripe’s existing crypto payment partners include Bitstamp and Coinbase, with the latter facilitating USDC adoption.
At the same time, major players like PayPal, Ripple, Visa, and Revolut have also ventured into the stablecoin market. In contrast, companies like Robinhood remain cautious, reflecting a more skeptical stance on stablecoin adoption.
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