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Stripe is in talks to acquire Bridge, a platform specializing in stablecoin transactions. This deal could significantly strengthen Stripe’s capabilities in the stablecoin space.
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Privately owned payments giant Stripe is in talks to close a deal to acquire Bridge, the stablecoin payments platform founded by Coinbase alumnus Sean Yu, Bloomberg reported on Wednesday. thing.
Sources said that although no agreement has been reached yet, talks are at an advanced stage. There is a possibility that both parties may withdraw from negotiations in the future.
Bridge is based in San Antonio, Texas and specializes in helping businesses manage stablecoins like USDT and USDC. We aim to build a payment network that challenges traditional systems.
Bridge’s list of clients and partners includes notable companies such as SpaceX, Stellar, and Stripe. The company recently secured $58 million in funding from prominent investors including Sequoia, Ribbit, and Index.
If the acquisition is completed, it could strengthen Stripe’s recent re-entry into the stablecoin payments space.
The company returned to the crypto market in 2022 and began enabling USDC payments on Polygon, with Twitter as an early customer. Earlier this year, we greenlit USDC stablecoin payments on Solana, Ethereum, and Polygon networks.
Stripe recently joined Paxos’ stablecoin network, becoming the first payment service provider (PSP) to integrate Paxos’ new enterprise-grade infrastructure into its systems.
Growing interest in the stablecoin market
Since the collapse of TerraUSD in 2022, regulatory scrutiny of the stablecoin market has increased. Still, it continues to grow as one of the most promising areas for fintech companies to tap into.
The financial success of existing stablecoin issuers like Tether is one key motivation. Tether’s profits soared to $5.2 billion in the first half of 2024. Beyond their profit potential, stablecoins are increasingly being used for savings and payments in a variety of markets.
Tether and Circle currently hold the lion’s share of the market share, but they will soon face stiff competition as major companies such as Robinhood and Visa reveal plans to issue stablecoins. . Ripple Labs, a major blockchain player, also plans to officially roll out its RLUSD stablecoin by the end of this year.
On the regulatory front, the impending implementation of regulations such as the European Union’s Markets in Cryptoassets (MiCA) framework is expected to reshape the stablecoin sector. These can challenge the position of players who do not follow the rules, but at the same time create opportunities for new entrants.
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