Stripe reportedly seeking acquisition of stablecoin payment provider Bridge

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As a researcher with a background in fintech and cryptocurrencies, I find this potential acquisition between Stripe and Bridge to be an intriguing development. Having closely followed both companies’ growth trajectories, it’s clear that this move could significantly bolster Stripe’s crypto offerings, particularly in the stablecoin sector.

It’s said that Stripe may be negotiating a deal to purchase a company providing stablecoins known as Bridge, about five months since they declared the resumption of accepting USDC payments from American merchants once more.

Reportedly, the global payment service provider Stripe is rumored to be negotiating with the Texas-based bridge for cryptocurrency transactions, Bridge, aiming to broaden its selection of crypto services.

Based on a Bloomberg update, discussions between Stripe and Bridge are ongoing, but as of now, no definitive conclusion has been reached. Neither company has publicly commented on this issue at this point.

Should the expansion move forward, Stripe might solidify its standing in the cryptocurrency sector. Back in April, Stripe’s President, John Collison, underscored the advantages of crypto transactions, particularly their “immediate processing” within the blockchain and seamless conversion to traditional currencies.

At the beginning of October, the company collaborated with Paxos, a stablecoin issuer, to launch its “Pay using Cryptocurrency” option. This feature allows merchants in approximately 70 countries to receive stablecoin payments that are settled as regular currency. Moreover, if necessary, these merchants can process refunds by converting the received regular currency into stablecoins and sending the refund straight back to the initial digital wallet from which the payment was made.

Bridge, established in 2022 by ex-executives Zach Abrams and Sean Yu from Square and Coinbase, empowers its users not just to transfer and receive stablecoins, but also to settle transactions using a custom-built stablecoin, as stated on their official site. In August, the company managed to secure $40 million in funding led by Sequoia and Ribbit, increasing the total amount raised to $58 million.

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2024-10-17 10:47