Fintech giant Stripe is in talks to acquire cryptocurrency startup Bridge for $1 billion, according to a source familiar with the discussions. The potential acquisition would be Stripe’s largest to date, recently valued at $70 billion. However, the deal is still under discussion and is subject to regulatory considerations and employee compensation.
Bridge, which provides infrastructure for crypto stablecoins, has raised $58 million in funding to date and has a strong customer base that includes government departments and companies such as SpaceX and Coinbase. The startup offers software that allows businesses to accept cross-border payments via stablecoins. According to Forbes, the deal would give Stripe the backbone to move deeper into stablecoins, which have a market cap of more than $170 billion.
Stripe has been an active investor in the cryptocurrency space, with previous acquisitions including TaxJar and Lemon Squeezy. In October, the company announced a new “Pay with Crypto” feature that integrates stablecoins and customer checkout services. Will Gaebrick, president of Stripe, highlighted the potential of stablecoins as a more efficient means of payment, especially outside of the United States.
Bridge founders Zach Abrams and Sean Yu are well-known entrepreneurs in the cryptocurrency and payments ecosystem. They previously developed a Venmo competitor called Evenly, which was sold to Block in 2013. Abrams and Yu teamed up again to launch Bridge in 2022.
Stripe’s re-entry into the cryptocurrency space comes after it suspended cryptocurrency payments in 2018, citing technical issues and high transaction rates. The potential acquisition of Bridge would provide Stripe with the infrastructure to further expand its presence in the stablecoin market.
Stripe declined to comment on acquisition talks, but did reveal that it has significant investments in stablecoins. The potential acquisition of Bridge would be an important move for Stripe as it continues to prioritize the cryptocurrency industry.
See more: Acquisitions, Bridges, Cross Borders, Crypto, Cryptocurrency, FinTech, News, Payments, PYMNTS News, Stablecoins, Stripe, Latest News
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