Fintech giant Stripe is reportedly in talks to acquire startup Bridge for a whopping $1 billion, according to sources familiar with the discussions. The acquisition, which is still under negotiation and subject to regulatory considerations, would mark one of the largest deals for Stripe, which was valued at $70 billion in its latest funding round. Bridge, a provider of infrastructure for crypto stablecoins, had previously raised $58 million in total funding and was valued at $200 million in its latest Series A round.
Bridge’s software enables businesses to accept cross-border payments made with stablecoins, which are cryptocurrencies pegged to another currency or financial instrument. The company has processed over $5 billion in annualized payment volume and counts government departments like the U.S. State Department and U.S. Treasury, as well as companies like SpaceX and Coinbase, among its customers. The founders of Bridge, Zach Abrams and Sean Yu, are well-known entrepreneurs in the crypto and payments ecosystem, having previously built a Venmo competitor called Evenly.
The acquisition of Bridge would allow Stripe to expand its presence in the stablecoin market, which includes cryptocurrencies like Tether, USDC, and Dai with a collective market cap of over $170 billion. Stripe had halted crypto payments in 2018 but restarted them in October, and the acquisition of Bridge would provide the company with a foundation to further explore stablecoin offerings. Stripe has been on an acquisition spree in recent years, with undisclosed deals for companies like TaxJar and Lemon Squeezy in 2021.
In a post on X, Bridge co-founder Zach Abrams confirmed the acquisition by Stripe for $1.1 billion. Stripe CEO Patrick Collison expressed his excitement about building the world’s best stablecoin infrastructure with the addition of Bridge to the company. The move comes as Stripe announced the availability of a new “Pay with Crypto” feature that integrates stablecoins with customer checkout offerings, charging a 1.5% transaction fee. Stripe president Will Gaybrick highlighted the potential of stablecoins as a more efficient means of payment for consumers, particularly outside the U.S.
With the acquisition of Bridge, Stripe aims to strengthen its position in the stablecoin market and expand its offerings in the crypto space. The deal underscores the growing importance of stablecoins in the digital payments ecosystem and the potential for innovation in this rapidly evolving sector. As fintech companies like Stripe continue to invest heavily in cryptocurrency and blockchain technology, the landscape of digital payments is set for further disruption and transformation.
