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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Bridge, a global stablecoin payment network founded by former Square and Coinbase executives Zach Abrams and Sean Yu, has raised $58 million in funding.
The funding round saw contributions from major investors including Sequoia, Ribbit, and Index Ventures, according to a Fortune report.
Of the $58 million, $40 million came from recent investments by Sequoia and Ribbit, underscoring the growing interest in the potential of stablecoins to revolutionize global finance.
Bridge to Facilitate Cross-Border Payments
Bridge’s platform is designed to facilitate cross-border payments using stablecoins, offering a faster and more cost-effective alternative to conventional financial networks.
This has attracted high-profile clients, including SpaceX and Coinbase.
SpaceX, in particular, utilizes Bridge’s services to handle payments in multiple currencies, converting them into stablecoins for integration into its global treasury operations.
“Fintech is deeply rational. If you can do something that is faster, cheaper, and more economical, you win,” Abrams said in an interview with Fortune.
He claimed that this philosophy is at the core of Bridge’s ambition to reshape the payments landscape.
In addition to its partnerships with leading firms, Bridge also collaborates with cryptocurrency platforms like the Stellar blockchain and the Bitcoin app Strike.
These collaborations enable the infrastructure necessary for seamless stablecoin transactions, further solidifying Bridge’s position in the fintech ecosystem.
Stablecoin Market Continues to Expand
The stablecoin market continues to expand despite past challenges.
As reported, the stablecoin market has seen its total capitalization soar to a record $168 billion after 11 months of consistent growth.
The market had previously peaked at $167 billion in March 2022 but saw a sharp decline later that year, falling to $135 billion by the year’s end.
Tether (USDT), the leading stablecoin, has played a pivotal role in this growth.
At the start of 2024, USDT had a market cap of $91.69 billion.
Since then, it has experienced steady monthly gains, reaching over $117 billion in market capitalization by August.
Circle’s USD Coin (USDC) has also seen gains throughout the year, reaching a market cap of over $34 billion, its highest point in 2024.
However, this remains significantly lower than its all-time high of $55.8 billion in June 2022.
Despite the market cap growth, stablecoin trading volumes have declined.
A report by CCData revealed an 8.35% drop in trading volumes to $795 billion in July, attributed to reduced activity on centralized exchanges and regulatory concerns in Europe.
The downward trend has persisted into August, with trading volumes currently just above $46 billion, according to CoinMarketCap.
Notably, the stablecoin market remains largely unregulated.
Last month, Senators Cynthia Lummis and Kirsten Gillibrand joined forces to propose a new bill aimed at regulating stablecoins.
Under the proposed legislation, payment stablecoin issuers would be subject to reserve and operational requirements, including the creation of subsidiaries dedicated to issuing stablecoins.
