Stripe Acquires Bridge: A $1.1 Billion Leap into Stablecoin Infrastructure

Stripe, the global fintech giant, has acquired the stablecoin platform Bridge in a landmark deal valued at $1.1 billion, its largest acquisition to date. The acquisition of Bridge comes as stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar—gain traction as efficient tools for cross-border transactions. 

Stripe joins other major financial players, such as Visa and PayPal, in incorporating stablecoin infrastructure into its services. Recent initiatives by major firms and evolving regulatory frameworks worldwide have shown the growing adoption of stablecoins in mainstream finance.

Bridge’s acquisition has a substantial return for its investors, with a considerable premium over the startup’s $200 million valuation during its Series A funding, where it raised $40 million of its total $58 million in venture capital. 

Since its founding two and a half years ago by Sean Yu and Zach Abrams, both fintech entrepreneurs with backgrounds at Square and Coinbase, Bridge has scaled rapidly to become a leading provider of stablecoin payment solutions. The startup’s core product—a suite of APIs designed to allow developers to incorporate stablecoin technology into their systems—has supported efficient cross-border and digital payments.

Earlier this month, Stripe reintroduced crypto payment functionalities for U.S. businesses, allowing them to process USDC transactions across major blockchain networks, including Ethereum, Solana, and Polygon. 

Stripe’s move follows its June 2024 partnership with Coinbase, in which it integrated the Base Layer-2 network and set itself as a payment option within Coinbase Wallet to establish its presence in the crypto payment landscape.

The partnership arrives at a key moment as major institutions like Visa and SWIFT advance their support for stablecoins, and regulators develop frameworks to oversee stablecoin infrastructure globally. 

Stablecoins, pegged to fiat currencies like the U.S. dollar, are increasingly popular in regions experiencing currency instability, providing a reliable means of preserving asset value. Bridge has supported this trend by processing billions in annualized payment volume and serving clients across sectors, from fintech companies like Dolar App to government agencies in Latin America.

Bridge’s founders, who launched the company amid a challenging market, emphasize that the company’s growth has been fueled by rising demand for stablecoin-based cross-border solutions. 

Today, Bridge’s products facilitate payment functionalities for businesses and individuals globally, enabling them to store and transfer USD-denominated stablecoins. Co-founder Zach Abrams highlighted the impact, noting, “Our products are giving millions of consumers and businesses more economical choice” as Bridge continues to innovate in the stablecoin space.

For Bridge’s leadership team, it is a great milestone for their second exit after the successful sale of their previous venture, Evenly, a competitor to Venmo, to Block in 2013. 

Co-founder Zach Abrams, who previously worked as a senior executive at Coinbase, emphasized the advantages that Bridge will gain from partnering with Stripe.

“This partnership will provide Bridge with the resources, reach, and expertise of a leading payments company,” Abrams stated on X. He further noted that both companies share a vision for stablecoin potential and the excitement surrounding the opportunity to develop a more connected financial system. 

As the cryptocurrency sector faces lower valuations than those seen in 2021, established fintech firms like Stripe are seizing strategic acquisition opportunities to advance their capabilities and address challenges in existing localized payment systems.