This Monday, October 21, 2024, it was reported that Stripe, the online payments giant, purchased Bridge, a stablecoin platform, for an amount of USD 1.1 billion. The transaction, subject to regulatory approvals, is expected to close in the coming months.
Stripe CEO Patrick Collison confirmed the acquisition of Bridge in a message published in X, where also expressed his vision on stable cryptocurrenciesstating that “they are room temperature superconductors for financial services.”
Collison added that, thanks to stablecoins, companies around the world will benefit from significant improvements in speed, coverage and costs in the coming years. “Stripe is going to build the best stablecoin infrastructure in the world and to that end, we are thrilled to welcome Bridge to Stripe,” the executive said.
From Bridge too confirmed the move in X. For them, the acquisition is seen as a step towards realizing the potential of stablecoins.
“Stablecoins represent a completely new payment platform. Realizing the potential of this platform will be a decades-long journey,” the Bridge team mentioned in the post. “And as we have gotten to know the Stripe team, it has become clear that we both share a vision of what is possible with stablecoins and an enthusiasm for the opportunity to create and build this future,” they added.
Bridge also highlighted the alignment of visions with Stripe, mentioning that they believe in the “profound impact that stablecoins can have globally.” “Stripe operates around the world and best understands the problems created by our localized payment systems,” said the team behind the company.
“We both believe that our increasingly globalized world needs better money. We need money that can flow across borders; be freely accessible to anyone, in any country; and it can be sent almost at no cost,” they noted.
Bridge, founded by Zach Abrams and Sean Yu, former employees of Square and Coinbase respectively, has so far raised $54 million in funding. The company has renowned clients such as SpaceX and Coinbase (COIN). This company is dedicated to facilitating the movement of money globally through the use of stablecoins.
On the other hand, Stripe, known for facilitating online and in-person payments for businesses, has shown interest in incorporate stablecoins to its platform this year, specifically Circle’s USDC stablecoin, signaling an expansion into the world of decentralized finance.
Stablecoins, according to the definition provided by the CriptoNoticias Cryptopedia, are cryptocurrencies designed to minimize volatility in value, usually pegging its price to a fiat currency such as the US dollar or to assets like gold.
Stable cryptocurrencies facilitate fast and efficient transactions globallyoffering an alternative to traditional currencies in contexts where stability and transaction speed are crucial.
Interest in stablecoins is more than a niche phenomenon. CriptoNoticias reported earlier that the market capitalization of these assets exceeded 172 billion dollarscoming noticeably closer to its all-time high of $180 billion.
This growth in stablecoin capitalization not only reflects an increase in adoption and trust in these cryptocurrencies, but could also be encouraging the price of assets like bitcoin, given the greater integration of traditional financial systems to the disruptive economy.
This article was created using artificial intelligence and edited by a human Editor.
