Global payments platform Stripe is reportedly negotiating the acquisition of Bridge, a company that facilitates transactions involving stablecoins, according to to a Bloomberg report. This potential deal signifies Stripe’s deeper foray into digital currencies and blockchain technology.
As noted by Bloomberg, discussions between Stripe and Bridge are ongoing, although no final agreement has been reached. Bridge allows businesses to create, store, send and accept stablecoins like Tether’s USDT and Circle’s USDC through its platform.
Founded less than two years ago by Zach Abrams and Sean Yu, Bridge has secured $58 million in funding from investors including Sequoia Capital, Ribbit Capital, Index Ventures and Haun Ventures. The company’s platform offers APIs which allow businesses to integrate stable functionality without dealing with the underlying complexities of blockchain.
Stripe, created by Patrick and John Collison, recently resumed its involvement in crypto by allowing American traders to accept payments in USDC. The move ended a hiatus in native processing of digital tokens and reflects the company’s renewed interest in crypto-based payment solutions.
The acquisition of Bridge would strengthen Stripe’s capabilities in the stablecoin sector, in line with its goal of facilitating faster and more efficient global transactions.
Other financial institutions are also exploring stablecoin opportunities. Visa announcement a platform for banks to issue tokens backed by fiat currencies, and companies like Revolution They are rumored to be considering launching their own stablecoins.
The bridge has treated over $5 billion in annualized payments volume and counts SpaceX, Coinbase, Stellar and Strike among its clients. The company positions itself as a facilitator of stablecoin functionality integration, offering solutions that simplify global money movements for crypto-native and traditional businesses.
Although Stripe has been considered a potential candidate for an IPO, the company’s founders have indicated no immediate plans for an IPO. Earlier this year, Stripe and several investors agreed to buy back more than $1 billion in shares from employees, valuing the company at $65 billion, up from a 2021 high of nearly $100 billion.
The potential acquisition signals a strategic move by Stripe to focus on expanding its payments services to include stablecoins, positioning the company at the forefront of Web 2.0 companies in the payments landscape digital.