According to the report, bridge transactions will validate the use of stablecoins on public blockchains.
Bernstein said stablecoins are currently the cheapest method of cross-border payments.
The broker noted that this is the largest cryptocurrency acquisition by a major payments company.
Stripe’s acquisition of Bridge validates the use of stablecoins on public blockchains, broker Bernstein said in a research note on Tuesday.
“Due to the increased scalability of blockchain, stablecoins are emerging as a key use case for blockchain, especially in cross-border payments,” analysts led by Gautam Chughani wrote.
According to the report, USD-denominated stablecoins on crypto rails currently cost just 1-2 basis points, making them the cheapest method of cross-border payments.
According to a Sunday X post from TechCrunch founder Michael Arrington, payment processor Stripe has signed a deal to acquire stablecoin platform Bridge for $1.1 billion, later confirmed by both companies.
Bernstein noted that the bridge deal is the largest cryptocurrency acquisition ever by a major payments company.
Companies like Bridge “play a critical role by building API software that allows enterprises to integrate stablecoin payments into their regular payments experience,” the authors write.
Investment bank Architect Partners said in a report on Monday that the deal highlights “the growing awareness of stablecoin-based payments and their attractive benefits,” and that these coins are being used by non-crypto companies. He pointed out that the number is increasing.
The report added that it is hard to imagine a more disruptive challenge to the TradFi banking system: “large-scale payments without bank involvement.”
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