Stripe in talks to acquire Web3 payment platform Bridge

Stripe in talks to acquire Web3 payment platform Bridge

2024-10-17 by Ndaman Olayinka 4 minutes read
Stripe in talks to acquire Web3 payment platform Bridge

According to reports, the massive payment processing company Stripe is in advanced negotiations to buy Bridge, a stablecoin money transfer company backed by Sequoia. 

The parties may still decide to back out of the possible agreement though, as a final decision has not yet been made, according to Bloomberg, which cited people familiar with the matter who asked not to be named in order to protect their privacy. 

Although the agreement is still pending and either party may back out, the purchase would put Stripe in a better position to take a bigger chunk of the growing stablecoin market. 

Stablecoin fintech platform Bridge

Since its official launch in August 2023, Bridge, a Texas-based company, has rapidly gained traction in the fintech industry. By enabling companies to create, process, and store stablecoins like USDC and USDT, the company provides a more efficient way for Treasury management and cross-border transactions. 

Prominent clients like SpaceX, which uses Bridge's technology to manage cross-border payments, and investment from venture capital firms like Sequoia and Ribbit have been drawn to its robust infrastructure. 

Bridge's stablecoin payment API-powered solutions enhance Stripe's in-house payment processing offerings. Both businesses serve the same customer base: businesses seeking effective payment infrastructures. By purchasing Bridge, Stripe could expand its stablecoin capabilities and provide its customers with better international payment options. 

Stripe integration with crypto services

Stripe has incorporated cryptocurrency services in recent months, as the company reportedly seeks to increase the scope of its integration with the industry. The company's EU division made it possible for regional online retailers to include a widget on their websites that would allow customers to buy Bitcoin, Ethereum, and SOL, among other cryptocurrencies, in July. 

Coinbase partners with payment processor Stripe 

Additionally, on June 27, 2024, Stripe and Coinbase signed a partnership to integrate Coinbase's Layer 2 network Base into Stripe's crypto payout products. This partnership will allow users to utilize Stripe's fiat-to-crypto onramp to purchase digital assets using Apple Pay or credit cards within the non-custodial Coinbase wallet. 

Although Stripe was the first significant payments company to support bitcoin in 2014, making it one of the early pioneers of the cryptocurrency space, the company discontinued the feature in 2018 due to diminishing demand brought on by lengthy confirmation times, price volatility, and higher fees. But last week, after a six-year wait, Stripe brought cryptocurrency payments to U.S. business again through Circle's USDC stablecoin on the Ethereum, Solana, and Polygon networks. 

Stripe to strengthen its presence in Europe

In order to increase its footprint in Europe and concentrate on developing seamless on-ramp solutions for fiat-to-crypto transactions, Stripe announced earlier this year that it had partnered strategically with the Bitstamp cryptocurrency exchange. 

The leading tokenization and regulated blockchain platform, Paxos, unveiled its new stablecoin payment system on Tuesday. Stripe's Pay with Crypto product, which enables stablecoin payments for merchants, is the first to use it. 

Disclaimer

This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.