Stripe to buy stablecoin platform Bridge
Stripe has agreed to buy stablecoin infrastructure provider startup Bridge, the fintech said in a tweet without disclosing the value.
Forbes had cited people familiar with the matter to report last week that the deal is valued at $1.1 billion. The deal, still subject to regulatory approvals and closing conditions, is expected to be completed in the coming months.
“Stablecoins are room-temperature superconductors for financial services,” John Collison, co-founder of Stripe, wrote on X. “Thanks to stablecoins, businesses around the world will benefit from significant speed, coverage, and cost improvements in the coming years. Stripe is going to build the world’s best stablecoin infrastructure.”
The financial services company, founded by John Collison and Patrick Collison in 2010, was valued at $65 billion earlier this year and is among the highest valued private startups in the United States.
About the company
Bridge is co-founded by Coinbase veterans Zach Abrams and Sean Yu. The co-founders have previously sold Evenly to Jack Dorsey’s Square. The stablecoin infrastructure provider startup helps businesses create, store, send and accept stablecoins such as USDT from Tether Holdings and Circle Internet Financial’s USDC. Stablecoins are cryptocurrencies whose value is pegged to another asset, such as a fiat currency or gold, to maintain a stable price. Designed to track the value of currencies or assets like the dollar, they are primarily used as bridge currencies in and out of the crypto economy.
The San Antonio-based company was launched in March last year and has welcomed governments, and payment companies seeking innovative methods to distribute aid, and Elon Musk’s SpaceX, which utilises the platform to handle its global treasury.
Earlier this year, the US Securities and Exchange Commission allowed bitcoin spot exchange-traded funds, allowing the digital currencies to gain traction. The Commission’s decision has aided the industry by easing scrutiny and allowing them to be accepted by major firms.
In related news, PayPal last year launched a US dollar stablecoin and became the first major financial technology company to adopt digital currencies for transactions.
