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Sujha Sundararajan
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Sujha Sundararajan
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Payment company Stripe is in advance talks to acquire stablecoin payment platform Bridge, sources told Bloomberg. However, no final decisions have been made and either of the firms could withdraw from the deal anytime, they added.
The news follows Stripe’s integration with Paxos stablecoin payments platform, revealed on October 15, designed for payment service providers (PSPs).
Stripe, founded by billionaire brothers Patrick and John Collison, also recently reintroduced USDC payments after a six-year hiatus. If finalized, the partnership would deepen Stripe’s recent foray into the stablecoin payments sector.
Bridge’s stablecoin-focused platform is designed to allow businesses to create, store, send, and receive stablecoins – Tether’s USDT and Circle’s USDC. The platform aims to challenge traditional systems by building a stablecoin payments network.
As reported in August, Bridge raised $58 million in funding from major investors including Sequoia, Ribbit, and Index Ventures. Among the total funding, $40 million came from investments by Sequoia and Ribbit, highlighting the growing interest in the potential of stablecoins in global finance.
Stripe’s Stablecoin Feature Adopted in Over 70 Countries
The private payments firm was among the first to enable Bitcoin payments in 2014; however, disabled it four years later. Stripe explained that slow processing times have led to failed transactions.
Payments giants such as PayPal and Visa have since entered the stablecoin market as interest in digital currencies has grown. Other fintech firms such as Robinhood and Revolut, are considering launching stablecoins.
Stripe’s client base, dominated by businesses in the e-commerce space, is constantly looking for low-cost ways to reach customers. As a result, the company believes in stablecoins, which suit the client’s needs.
“We, as a principle, do things that Internet businesses want; and they want to reach more customers at lower cost,” Jeff Weinstein, Stripe’s product lead, said.
“Stablecoins, while still early, show some sign that they can help achieve that.”
Further, Stripe announced that individuals from more than 70 countries used stablecoins for online transactions within the first 24 hours of the launch.
During the company’s Global Internet Economy conference in April, Stripe co-founder and President John Collison emphasised improved transaction speeds and reduced fees as key drivers behind their interest in stablecoins.
