Payments giant Stripe is reportedly exploring the acquisition of stablecoin platform Bridge, according to sources familiar with the matter. The potential deal is still in negotiation, and there’s no guarantee that it will be finalized, as either party could back out, according to a report from Bloomberg.
Stripe’s Re-Entry into the Crypto Space
The talks come as Stripe prepares for a major return to the digital asset space after a six-year hiatus. Earlier this year, John Collison, Stripe’s co-founder, revealed the company’s plans to reintroduce stablecoin services. Collison emphasized the efficiency of stablecoin transactions on Stripe’s platform, noting that they offer near-instant settlement on-chain with automatic conversion to fiat.
In June 2024, Stripe took another step into crypto by partnering with Coinbase to streamline fiat-to-crypto transactions. This partnership allowed users from over 150 countries to benefit from faster settlement times and lower transaction costs by using stablecoins.
Stablecoins Drive Cross-Border Transactions
On October 9, Stripe integrated Circle’s USDC stablecoin into its primary payment interface. On the first day alone, users from more than 70 countries engaged in stablecoin transactions, reflecting growing global demand. Stablecoins have become increasingly popular, particularly for cross-border payments, where traditional methods often come with high fees and long wait times.
For those sending remittances, stablecoins offer a cost-effective solution, allowing users to send money abroad without worrying about fees cutting into the amount received by their loved ones.
Paxos and Stripe Collaboration
Following Stripe’s USDC integration, Paxos launched its own stablecoin payment platform, which targets payment service providers rather than individual consumers. Stripe was the first company to integrate Paxos’ API into its operations, further demonstrating its commitment to expanding its presence in the stablecoin sector.
