Stablecoin is looking to bridge the payment network.
Key receivers
Stripe is in advanced discussions to acquire Bridge, a platform specializing in stablecoin transactions. The deal could significantly boost Stripe's presence in the stablecoin sector.
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Stripe, the privately-owned payments giant, is in talks to sign a deal to acquire Bridge, a stablecoin payment platform founded by Coinbase alumnus Sean Yu, Bloomberg reported Wednesday.
Although no agreement has been reached, talks are at a stage, sources familiar with the matter suggest. Either side can still walk out of the deal.
Bridge, based in San Antonio, Texas, is focused on enabling stablecoins like USDT and USDC to manage their businesses. It aims to build a payment network that challenges traditional systems.
Bridge's list of clients and partners includes some high-profile names like SpaceX, Stellar and Stripe. The company recently received $58 million in funding from prominent investors including Sequoia, Rabbit, and Index.
If completed, the acquisition could accelerate Stripe's recent foray into the stablecoin payments sector.
The company returned to the crypto market in 2022 and started enabling USDC payments on Polygon, with Twitter as its first customer. Earlier this year, it greenlit USDC stablecoin payments on the Solana, Ethereum, and Polygon networks.
Stripe recently joined Paxos' Stantin network, becoming the first Payment Service Provider (PSP) to integrate Paxos' enterprise-grade infrastructure into its system.
Growing interest in the stablecoin market
Since the collapse of TerraUSD in 2022, the stablecoin market has come under increasing regulatory scrutiny. Still, fintech players continue to grow as one of the most promising areas to exploit.
It is one of the key drivers of the financial success of stablecoin issuers like Tether. Tether's profit for the first half of 2024 has risen to $5.2 billion. Beyond its earning potential, Stablecoins are being used for savings and payments in various markets.
Tether and Circle are currently taking most of the market shares, but they will soon face heated competition as major companies like Robinhood and Visa plan to launch stablecoins. Ripple Labs, a major blockchain player, is also expected to officially launch the RLUSD stablecoin later this year.
On the regulatory front, the implementation of regulations such as the EU Markets in Crypto-Assets (MiCA) framework is set to reshape the stability coin sector. These can challenge the position of players who are unable to play according to the rules, but at the same time they create an opportunity for new entrants.
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