Stripe Acquires Bridge to Expand Its Cryptocurrency Services, Targeting the Growing Stablecoin Market

The news was initially revealed by TechCrunch co-founder Michael Arrington in an X post on October 20th, though neither Stripe nor Bridge has officially confirmed the acquisition as of yet.

Tech news site TechCrunch reported on October 20 that Stripe is in the process of acquiring Bridge, a company specializing in stablecoin technology, according to an X post by TechCrunch co-founder Michael Arrington. The report adds that neither Stripe nor Bridge has officially confirmed the acquisition as of yet.

Founded in 2022 by former Coinbase executives Zach Abrams and Sean Yu, Bridge facilitates the creation, transfer, and storage of stablecoins. The company raised $40 million in August in a funding round led by Sequoia, Ribbit, and Index.

The acquisition aligns with Stripe’s renewed focus on expanding its services in the cryptocurrency sector. The multinational payments processor initially introduced Bitcoin payments in 2014 but discontinued the offering four years later due to low adoption rates.

However, in 2024, Stripe announced the company’s re-entry into the crypto sector with a focus on stablecoin payments. The company highlighted the growing demand for blockchain-based alternatives due to their faster transaction speeds and lower costs compared to traditional payment methods.

In October, Stripe began accepting Circle’s USDC stablecoin in partnership with Paxos, enabling merchants across 70 countries to accept fiat-settled stablecoin payments from their customers. Stripe has also engaged with the cryptocurrency sector through various other initiatives, such as enabling payouts for creators on X via USDC and launching a fiat-to-crypto onramp service in 2022.

The Bridge acquisition comes amid a surge in stablecoin usage, with the market capitalization of stablecoins reaching an all-time high of nearly $170 billion in Q3 2024. According to experts, the market could grow to $3 trillion by 2030.

Several traditional financial platforms have ventured into the stablecoin market recently. In early October, Visa launched a platform that allows banks to issue fiat-backed stablecoins, after observing that stablecoin transaction volumes were approaching levels seen in traditional payment networks.

Meanwhile, PayPal entered the stablecoin market last year by launching PayPal USD (PYUSD) on Ethereum, aiming to enable lower-cost transfers without intermediaries.

The acquisition of Bridge positions Stripe to compete more effectively with other fintech companies expanding into the stablecoin market and highlights the growing convergence between traditional financial systems and blockchain technology. Analysts believe the acquisition is a strong signal of the increasing adoption of stablecoins as a mainstream payment method.

Valued at approximately $70 billion, Stripe has been actively expanding its presence in digital payments, reaching a significant milestone earlier this year by surpassing $1 trillion in total payment volume. By integrating Bridge’s expertise in stablecoin technology, Stripe aims to further enhance its digital payment infrastructure and capitalize on the evolving financial landscape, solidifying its position as a leader in the fintech industry.

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