Stripe in Negotiations To Acquire Stablecoin Fintech Firm Bridge

• Stripe may acquire the stablecoin platform, Bridge, and expand its payments network.
• Stripe has returned crypto/stablecoin services to its platform as of Oct. 2024.
• The deal could signal growing demand for stablecoins in international markets.

Payments giant Stripe may be venturing deeper into cryptocurrencies as reports emerge that it intends to buy a stablecoin startup.

These reports follow Stripe’s move back into crypto in April 2024. The company announced that it would bring back crypto payments after stopping them in 2018.

Stripe and Stablecoins

According to sources cited by  Bloomberg , payments giant Stripe is in advanced talks to acquire stablecoin platform Bridge to expand its stablecoin payments network.

Bridge’s business-focused platform specifically allows users to store, send, and receive stablecoins such as USD Coin (USDC) and Tether (USDT). Notably, Bridge has processed over $5 billion in annualized payment volume with Coinbase, Strike, Stellar, and even SpaceX as clients.

Created by former Coinbase and Square employees, Bridge officially launched in Aug. 2024 after approximately three years of development. It raised some $58 million in funding from Sequoia, Index, Haun Ventures, and others.

Several years ago, Stripe discontinued its crypto services. However, on Oct. 9, Stripe CEO Jess Weinstein announced that cryptocurrencies were coming back to Stripe. This began with the rollout of USDC on the platform, but now it appears that Stripe intends to take this a step further.

Stablecoin Adoption

The news comes as major players in the payments industry are experimenting with or completely embracing stablecoins.

Most recently, PayPal completed its first business payment using its stablecoin, PayPal USD ( PYUSD ). Specifically, it used PYUSD to pay an invoice to Ernst & Young LLP, marking a major milestone for stablecoins.

With Revolut reportedly developing its own stablecoin and Visa’s ongoing trials with crypto and stablecoin technologies, the payments industry may be the main driver behind stablecoin adoption in the years to come.