News Report:
Financial technology giant Stripe has finalized a deal to acquire stablecoin platform Bridge for $1.1 billion.
This acquisition marks the largest in the cryptocurrency industry to date.
Record-breaking $1.1 billion transaction
TechCrunch founder Michael Arrington revealed the news in a statement, stating, “The deal is done. $1.1 billion.”
Bridge, co-founded by Sean Yu and Zach Abrams, provides software tools that enable businesses to accept stablecoin payments. The platform allows companies to create, store, send, and receive such assets.
Zach Abrams previously served as the Director of Consumer at Coinbase and founded peer-to-peer payment company Evenly, which was later acquired by Square. Before co-founding Bridge, Sean Yu held key engineering positions at major companies such as Coinbase, Square, DoorDash, and Airbnb.
Earlier this year, the startup raised $58 million in funding from notable investors including Sequoia Capital, Haun Ventures, Ribbit, and Index Ventures, according to Forbes. This included a $40 million Series A funding round, valuing the company at $200 million. This means that Stripe’s $1.1 billion acquisition of Bridge is a significant boost to its previous valuation.
The company was founded in August, and its mission, as stated in a statement, is to address the financial challenges brought about by national currencies in an interconnected global economy. Bridge aims to overcome these barriers by leveraging stablecoins to provide faster, more affordable, and convenient payment solutions.
Stripe’s increasing focus on cryptocurrencies
Stripe is a payment processing platform that enables businesses to accept credit, debit, and other online payments, and has been actively expanding its presence in the cryptocurrency space.
Just six months ago, co-founder John Collison announced that the company would start supporting global stablecoin payments. When it was implemented, Circle’s USD Coin (USDC) was integrated into its payment interface.
In June, the payment processing company also partnered with Coinbase. This introduced three new features, including integrating the exchange’s Layer 2 network into its crypto payment product.
Stripe also integrated USDC on Base into its fiat-to-crypto onramp, allowing its US customers to convert fiat currency to cryptocurrency faster. Coinbase also agreed to include Stripe as a payment option for customers purchasing digital assets through its Coinbase Wallet.
As of March 2024, the company reported processing over $1 trillion in payments this year, with businesses using its platform accounting for approximately 1% of global GDP.
