Payment giant Stripe, one of the world’s leading online payment companies, has acquired the stablecoin platform Bridgefor $1.1 billion, marking the largest acquisition in the history of the crypto industry. This move highlights Stripe’s ambition to expand its footprint in the stablecoin sector. The deal was made public by TechCrunch founder Michael Arrington in a post on X (formerly Twitter).
Bridge is a platform that enables businesses to accept stablecoins as a form of payment. This acquisition is notable because Bridge was recently valued at around $200 million. The significant purchase price underscores the growing importance of stablecoins in the payments landscape.
Stablecoins: The “Killer App” of the Crypto Industry
Stablecoins have emerged as one of the most impactful applications in the crypto sector. Last quarter, stablecoins processed a staggering $8.1 trillion in transaction volume—more than twice that of Visa and nearly eight times that of PayPal. This trend highlights the increasing reliance on these digital currencies, which are designed to be less volatile than traditional cryptocurrencies due to their peg to stable assets like the US dollar.
The two leading stablecoins, Tether (USDT) and USD Coin (USDC), back their reserves with US Treasury bonds, and they now rank among the top 20 holders of these securities, ahead of countries like Germany. Together, they boast a combined market capitalization of approximately $160 billion.
Stripe’s Role in the Crypto Space
Stripe, which processed around $1 trillion in payments last year, has long been a pioneer in the crypto payments arena. In 2014, the company introduced Bitcoin payments but suspended the service in 2018, citing the cryptocurrency’s volatility. Since then, Stripe has pivoted towards stablecoins, particularly USDC, accepting it for payments on the Solana, Ethereum, and Polygon blockchains.
Additionally, Stripe has partnered with Coinbase, the leading US crypto exchange, and now allows cryptocurrency purchases via credit and debit cards in the EU.
With the acquisition of Bridge, Stripe solidifies its commitment to shaping the future of digital payments. Stablecoins offer a promising foundation due to their stability and potential to make cross-border payments more efficient and cost-effective.
This acquisition is likely to intensify competition in the crypto payments space and position Stripe as a leading player in the global stablecoin market.