Payments company Stripe is acquiring stablecoin platform Bridge, with the two companies saying they will “accelerate the adoption and use of tokenized dollars.”
The deal is subject to regulatory approval and is expected to close in the coming months, Bridge said in a blog post on Monday.
TechCrunch founder Michael Arrington reported that the deal was valued at $1.1 billion. A Stripe spokeswoman declined to comment on the terms of the deal, and Bridge did not immediately respond to a request for further details.
Read more: Stripe reintegrates crypto payments in the US
Stripe CEO Patrick Collison said in an X post that the company aims to build “the world’s best stablecoin infrastructure.”
Bridge co-founder Zach Abrams said in an X post that Bridge released its API in March 2023. He added that the company’s first year was “challenging,” but it initially attracted interest from cross-border payment companies and began to scale.
“Then we brought government agencies on board to deliver aid, fintech companies built USD-based savings and consumption products, SpaceX controlled the global treasury, and many others. ,” Abrams wrote.
Visa and SWIFT have since started supporting stablecoins natively, Bridge said in a blog post on Monday.
Read more: Why Visa’s new stablecoin initiative could be a game-changer
“Policymakers around the world recognize the strategic importance of this technology to financial systems and are committed to providing clarity and support for stablecoin infrastructure,” the company wrote. . “And in the background, the adoption and use of stablecoins is rapidly accelerating.”
The market capitalization of stablecoins currently stands at just over $170 billion, according to data from DefiLlama.
Eric Risley, founding partner at advisory firm Architect Partners, said he believes the deal is “the most significant M&A transaction ever for our industry.”
“This transaction is further evidence of the growing recognition that stablecoin-based payments have compelling benefits and are being embraced by non-crypto companies,” he told Blockworks. .
These benefits include virtually instant payments and very low fees, which are especially evident in cross-border payments between businesses and individuals, he added.
“It’s hard to imagine a more fundamentally competitive move against the traditional banking system,” Risley said. “Large-scale payments can be made without going through banks.”
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