Fintech unicorn Stripe is reportedly in talks to acquire the crypto startup Bridge for $1 billion, according to Forbes. The potential acquisition, which is still under discussion, would mark one of the largest deals for Stripe, which is currently valued at $70 billion. Regulatory considerations and compensation for employees could potentially pose hurdles to the deal. Bridge, which provides infrastructure for crypto stablecoins, had previously raised $58 million in funding and was valued at $200 million in its latest Series A round.
Stripe had initially halted crypto payments in 2018 but resumed them in October, signaling a renewed interest in the space. Acquiring Bridge would enable Stripe to delve deeper into stablecoins, a type of cryptocurrency pegged to a traditional currency or financial asset. The stablecoin market has seen significant growth, with a collective market cap of over $170 billion, according to Forbes. Bridge, which enables businesses to accept cross-border payments with stablecoins, has processed over $5 billion in annual payment volume and counts notable clients such as SpaceX, Coinbase, and government departments among its customers.
Bridge founders Zach Abrams and Sean Yu are well-known entrepreneurs in the crypto and payments industry, with experience at companies like Coinbase, Brex, and Airbnb. The duo previously built a Venmo competitor called Evenly, which was acquired by Block in 2013. The potential acquisition of Bridge by Stripe could provide the latter with a strong foundation to further expand its presence in the stablecoin ecosystem. While Stripe has made several undisclosed acquisitions in recent years, acquiring Bridge could represent a major strategic move for the company.
In October, Stripe announced a new “Pay with Crypto” feature that integrated stablecoins into its checkout offerings, with a 1.5% transaction fee. Stripe president Will Gaybrick highlighted the potential efficiency of stablecoins as a means of payment, particularly for customers outside the U.S. Gaybrick emphasized the growing importance of stablecoins in the payments industry, suggesting that they could be the “killer app” for crypto. While Gaybrick did not confirm the potential acquisition of Bridge, he acknowledged that Stripe was heavily investing in stablecoins and exploring opportunities in the space.
The reported discussions between Stripe and Bridge come amidst a growing interest in stablecoins and cryptocurrencies within the fintech industry. Major companies like Facebook’s Meta (formerly Facebook) and Visa have also announced initiatives in the digital asset space. Stripe’s potential acquisition of Bridge could signal a significant push into the crypto market, leveraging the expertise and technology of the startup to enhance its offerings and stay ahead of competitors. The outcome of the negotiations and the impact on both companies remains to be seen, but the deal could have far-reaching implications for the future of payments and digital assets.
