Stripe Finalizes $1.1 Billion Acquisition of Stablecoin Platform Bridge in Historic Deal

Stripe, the leading payments company, has officially acquired stablecoin platform Bridge in a record-breaking $1.1 billion transaction, making it the largest acquisition in the cryptocurrency industry to date. The news was confirmed by TechCrunch founder Michael Arrington via a tweet on October 20, 2024, stating, "This deal is done. $1.1b."

The acquisition will enable Stripe to integrate Bridge’s innovative software into its platform, allowing businesses to process stablecoin payments seamlessly. Bridge, founded in 2022 by Sean Yu and Zach Abrams, provides companies with efficient tools for handling stablecoin transactions, addressing key challenges such as high fees and slow transaction times seen in traditional payment methods.

Bridge, which was designed as an alternative to conventional payment networks like SWIFT and credit card systems, had previously raised $58 million from investors, with its valuation reaching $200 million. The $1.1 billion purchase price by Stripe reflects a significant boost in the platform’s valuation, underscoring the growing demand for stablecoin payment solutions.

The acquisition comes as Stripe, valued at $70 billion as of July 2023, aims to expand its services to meet the rising demand for cryptocurrency-based payments. Bridge’s technology will enhance Stripe’s ability to support global stablecoin payments, a move aligned with the company's recent efforts to integrate stablecoins like USD Coin (USDC) into its ecosystem.

Co-founders Yu and Abrams bring a wealth of experience to the deal. Yu has held engineering roles at companies such as Coinbase, Square, and Airbnb, while Abrams previously served as Head of Consumer at Coinbase. Their first venture, Evenly, a peer-to-peer payment service, was acquired by Block (formerly Square) in 2013.

With this acquisition, Stripe reinforces its position as a leader in payment innovation, having processed over $1 trillion in payments in 2023—accounting for nearly 1% of global GDP. The addition of Bridge’s stablecoin capabilities is expected to further accelerate Stripe’s growth in the evolving digital payments landscape.