Oct 17, 2024
Months after co-founder John Collison announced “crypto is back,” fintech giant Stripe is reportedly in talks to acquire Bridge, a startup that specializes in infrastructure for crypto stablecoins, according to five sources familiar with the discussions, as reported by Forbes. The deal is said to be valued at $1 billion, according to three of the sources.
Although the acquisition is still under negotiation and could be called off, it would represent Stripe’s largest purchase to date. Stripe, which recently had a valuation of $70 billion, faces regulatory challenges, including licensing, as well as compensation for Bridge’s employees, including founders Zach Abrams and Sean Yu, according to two of the sources.
When asked for comment, Stripe declined, and Bridge did not respond to inquiries.
The $1 billion valuation for Bridge, which has not been publicly reported before, is a substantial increase from the company’s earlier rounds of funding. According to a Fortune article and two sources, Bridge had raised a total of $58 million, including a $40 million Series A round that valued the company at $200 million. The startup was already receiving interest for a potential Series B round at a higher valuation.
Previously, Bloomberg reported on acquisition talks between Stripe and Bridge.
Stripe reentered the crypto space in October, after halting crypto payment services in 2018 due to technical and transaction cost issues. Acquiring Bridge would strengthen Stripe’s entry into stablecoins—cryptocurrencies tied to a fiat currency or financial instrument, like Tether, USDC, and Dai. The collective market cap of these coins exceeds $170 billion, according to Forbes’ Digital Assets live tracker.
Bridge provides software that enables businesses to accept stablecoin payments across borders. The startup processes over $5 billion in annualized payment volume, according to an August blog post from investor Sequoia. Bridge’s clients include government bodies like the U.S. State Department and the U.S. Treasury, and businesses such as SpaceX and Coinbase. Notable investors include 1confirmation, Bedrock, Haun Ventures, Index Ventures, Oak HC/FT, and Ribbit.
Founded in 2022, Abrams and Yu previously co-founded Evenly, a Venmo competitor they sold to Block in 2013. Abrams went on to hold senior positions at Coinbase and Brex, while Yu worked at DoorDash and Airbnb.
This acquisition would follow a series of other undisclosed purchases by Stripe, including its 2021 acquisition of TaxJar and the more recent acquisition of Lemon Squeezy in July. Earlier this October, Stripe introduced a new “Pay with Crypto” feature, integrating stablecoins into its checkout options and charging a 1.5% transaction fee. In an interview with Forbes, Stripe President Will Gaybrick hinted at the growing role of stablecoins, saying, “The killer app for crypto is just money.”
When asked directly whether Stripe was acquiring Bridge to advance its stablecoin ambitions, Gaybrick remained vague: “We are investing heavily in stablecoins, but I don’t have any updates on that front for now.”