In a landmark deal for the cryptocurrency industry, US payment processing giant Stripe has acquired fintech startup Bridge for $1.1 billion. This marks Stripe’s largest acquisition ever and the most valuable deal in the crypto space to date, according to TechCrunch founder Michael Arrington.
Founded by seasoned entrepreneurs Sean Yu and Zach Abrams, Bridge has established itself as a leading provider of stablecoin payment solutions for businesses. This acquisition represents a significant return for Bridge investors, with the deal valuing the company at a substantial premium compared to its $200 million valuation during its Series A funding round.
Stripe’s strategic move aligns with its recent expansion into cryptocurrency services. Earlier this month, the company reintroduced cryptocurrency payment functionality for US businesses, enabling them to accept USDC transactions across multiple blockchain networks, including Ethereum, Solana, and Polygon.
This acquisition follows Stripe’s partnership with Coinbase in June, where Stripe integrated the Base layer-2 network into its crypto payment offerings and became a payment method within Coinbase Wallet. Notably, Bridge co-founder Zach Abrams previously held a senior executive position at Coinbase.
The deal underscores Stripe’s ambition to further solidify its position in the digital payment infrastructure market. Already valued at $70 billion, Stripe is leveraging this acquisition to expand its reach and capabilities in the rapidly evolving world of crypto payments. For the leadership team at Bridge, this marks their second successful exit, following the sale of their previous venture, Venmo rival Evenly, to Block in 2013.
Bridge, founded in 2022, allows businesses to create, store, send, and accept stablecoins, offering a potential alternative to traditional financial systems like SWIFT and credit cards. This acquisition positions Stripe to capitalize on the growing interest in stablecoins for cross-border payments and other use cases.
This acquisition could be a catalyst for wider adoption of stablecoin payments, potentially leading to an explosion of stablecoins tailored to various use cases. As traditional financial companies like Stripe increasingly utilize existing and new stablecoins, the landscape of digital finance continues to evolve.
