Stripe looking to acquire stablecoin payments network Bridge

Privately held payments giant Stripe is in talks to seal a deal to acquire Bridge, a stablecoin payments platform founded by Coinbase alum Sean Yu, Bloomberg reported Wednesday.

Sources familiar with the matter indicate that discussions are in advanced stages, although no agreement has been closed. Still, both sides could walk away from the negotiations.

Headquartered in San Antonio, Texas, Bridge specializes in enabling businesses to manage stablecoins like USDT and USDC. Their goal is to build a payments network that challenges traditional systems.

Bridge’s list of clients and partners includes some high-profile names like SpaceX, Stellar, and Stripe. The company recently raised $58 million in funding from prominent investors including Sequoia, Ribbit, and Index.

If completed, the acquisition could enhance Stripe’s recent re-entry into the stablecoin payments sector.

The company returned to the cryptocurrency market in 2022 and began allowing USDC payments on Polygon, with Twitter as its initial client. At the beginning of this year, USDC stablecoin payments given the green light on the Solana, Ethereum and Polygon networks.

Stripe recently joined the Paxos stablecoin network, becoming the first payment service provider (PSP) to integrate the Paxos network. new enterprise-grade infrastructure in your system.

Growing interest in the stablecoin market

The stablecoin market has come under increasing regulatory scrutiny since the collapse of TerraUSD in 2022. Still, it continues to grow as one of the most promising areas for fintech players to exploit.

The financial success of existing stablecoin issuers, such as Tether, is one of the key motivators. Tether saw its profits soar to $5.2 billion in the first half of 2024. Beyond the profit potential, stablecoins are increasingly being used for savings and payments in various markets.

Currently, Tether and Circle are grabbing the majority of market shares, but they will soon face stiff competition as major companies like Robinhood and Visa have revealed plans to launch their stablecoins. Ripple Labs, a major blockchain player, is also expected to officially launch its RLUSD stablecoin later this year.

On the regulatory front, the imminent implementation of regulations, such as the European Union’s Markets in Crypto Assets (MiCA) framework, will reshape the stablecoin sector. This could challenge the position of players who do not respect the rules but, at the same time, create an opportunity for new entrants.

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