Stripe in talks to acquire stablecoin startup Bridge, expanding its footprint in crypto payments

According to a report from Forbes citing sources familiar with the matter, the payment processing giant Stripe is in talks to acquire the startup company Bridge, a provider of infrastructure for stablecoins in the cryptocurrency space, for a reported amount of up to $1 billion. However, as details are still being discussed, either party could walk away, making this potentially the largest acquisition for Stripe to date.

Stablecoin Infrastructure Provider Bridge

Bridge is a cryptocurrency stablecoin infrastructure provider that offers software enabling enterprises to use stablecoins for cross-border payments. Its clients include government agencies like the U.S. Department of State and the U.S. Department of the Treasury, as well as companies like SpaceX and Coinbase. Bridge's other notable investors include 1confirmation, Bedrock, Haun Ventures, Index Ventures, Oak HC/FT, and Ribbit.

Bridge founders Abrams and Yu are well-known entrepreneurs in the cryptocurrency and payments ecosystem. They previously created a company called Evenly, a competitor to Venmo, which they sold to Block in 2013. The duo teamed up again in 2022 to launch Bridge.

The reported $1 billion valuation in this round significantly increases Bridge's value from previous funding rounds. The company had previously raised a total of $58 million, with the most recent funding round at a $200 million valuation, raising $40 million. Sources suggest that Bridge has received interest in a Series B funding round at a potentially higher valuation.

Stripe Reintroduces Crypto Payments with Emphasis on Stablecoins

Stripe has made several acquisitions in recent years, with transaction terms undisclosed. According to data from startup tracking firm PitchBook, in 2021, Stripe acquired TaxJar, and in July of this year, it acquired Lemon Squeezy.

After six years of discontinuing Bitcoin and fully suspending support for cryptocurrency payment services, Stripe has reintroduced crypto payments for U.S. businesses, allowing merchants to receive and make payments in the stablecoin USDC via Ethereum, Solana, and Polygon.

Stripe Returns to Crypto World, Opens US Businesses to Pay with USDC

Stripe President Will Gaybrick stated that stablecoins may be a more efficient payment method for certain consumers, especially outside the U.S. When directly asked if Stripe acquired Bridge to assist with this, Gaybrick only commented, "We have indeed made significant investments in stablecoins." However, he declined to comment on the acquisition.