Stripe in Talks to Acquire Bridge, a Sequoia-Backed Stablecoin Payments Company, in a Deal Valued at Around $1B

If finalized, this acquisition would mark Stripe's largest to date. The deal, however, is not yet certain, as both parties could still withdraw.

Payment processing behemoth Stripe is nearing the final stages of talks to acquire Bridge, a Sequoia-backed venture focused on facilitating money movement through stablecoins, in a deal that could be valued at about $1 billion, according to people familiar with the matter.

If completed, the acquisition would be Stripe’s largest to date. But the deal is not yet certain, and both parties could still walk away, the people said, requesting anonymity because the talks are private.

Bridge, co-founded by former executives from Square and Coinbase, integrates stablecoins like USDC and USDT into traditional financial systems, enabling cross-border payments and currency exchanges. The Texas-based company has gained traction through partnerships like the one with Bitso for B2B payments in Latin America.

Stripe first entered the crypto arena in 2014 when it introduced support for Bitcoin payments. However, the company discontinued the feature in 2018, citing factors like declining demand, lengthy transaction times, higher fees, and price volatility. Last week, the company re-introduced crypto payments, announcing support for USDC stablecoin transactions on the Ethereum, Solana, and Polygon networks.

Separately, Paxos also announced that Stripe will be the first payment service provider (PSP) to integrate its new enterprise-grade stablecoin payments platform. Stripe’s “Pay with Crypto” product, which allows businesses to accept stablecoin payments, will feature Paxos’ technology, enabling these payments to settle in fiat currencies like the U.S. dollar.

Stripe already supports pay-ins from over 70 countries, and the addition of stablecoin payments will allow businesses to accept payments from almost anywhere globally.

In recent months, Stripe has also been integrating other crypto services, including partnerships with Coinbase and the launch of crypto purchasing options for European vendors.

Bridge, on the other hand, recently closed a $58 million Series B funding round led by Sequoia and Ribbit, showcasing the growing interest in stablecoin-based payment solutions.

The stablecoin market has witnessed rapid growth, with a total market capitalization exceeding $170 billion as of September 2024. Major players like Tether (USDT), Circle (USDC), and PayPal (PYUSD) continue to lead the market.