Stripe Targets Largest Acquisition with $1 Billion Deal for Bridge

Stripe, the global FinTech leader, is reportedly in discussions to acquire the crypto startup Bridge for $1 billion, marking its largest acquisition to date. Sources familiar with the talks indicate that the deal is still under negotiation, pending regulatory approval and employee compensation considerations. Stripe, recently valued at $70 billion, would make a significant leap into the crypto space if the acquisition proceeds.

Bridge, known for its stablecoin infrastructure, has raised $58 million in funding and serves notable clients, including SpaceX, Coinbase, and various government departments. The company provides software enabling businesses to accept cross-border payments in stablecoins. If the acquisition materializes, Stripe would gain a strong foothold in the $170 billion stablecoin market, according to Forbes.

Stripe has been ramping up its crypto investments, with previous acquisitions such as TaxJar and Lemon Squeezy. In October, it introduced a “Pay with Crypto” feature, integrating stablecoins into its checkout services. Stripe’s president, Will Gaybrick, emphasized the potential of stablecoins for more efficient payments, especially outside the U.S.

Bridge was founded in 2022 by Zach Abrams and Sean Yu, seasoned entrepreneurs in the crypto and payments sectors. The pair previously founded Evenly, a Venmo competitor acquired by Block in 2013.

Stripe’s reentry into the crypto world, following its 2018 exit due to technical and cost challenges, would be bolstered by the acquisition of Bridge, positioning it for further expansion in the stablecoin market. While Stripe has not commented on the acquisition, its commitment to stablecoins is evident through ongoing investments.

Source: https://www.pymnts.com/acquisitions/2024/stripe-aims-for-largest-acquisition-yet-with-1-billion-deal-for-bridge/