Stripe's Acquisition of Bridge: A Milestone in the Era of Stablecoins

Stablecoins are rising rapidly, with their global transaction settlement volume exceeding twice that of Visa, and a year-on-year growth rate of over 50%. As one of the three major payment giants in the United States, Stripe has made the largest acquisition in the cryptocurrency industry by acquiring the stablecoin API company Bridge.xyz, which was only established two years ago, for $1.1 billion after attempting crypto payments.

The Rise of Stablecoins

According to a report from a certain cryptocurrency research institution, stablecoins have become one of the most prominent "killer applications" in the Web3 field. Thanks to the widespread adoption of smartphones and the implementation of blockchain technology, stablecoins may become the greatest financial empowerment movement in history.

Stablecoins simplify value transfer, with quarterly trading volumes more than double that of a well-known payment company. Measured by daily active addresses, stablecoins account for nearly one-third of daily cryptocurrency usage, second only to DeFi.

A report from a payment company shows that the total supply of stablecoins is approximately $170 billion, with annual settlement assets valued in the trillions of dollars. Around 20 million addresses engage in stablecoin transactions each month, and over 120 million addresses hold a non-zero stablecoin balance. This indicates that stablecoins are operating outside of the traditional financial system.

Some amazing stablecoin data:

• Become the sixth largest purchaser of U.S. Treasury bonds
• 30% of cross-border remittances are conducted through stablecoin
• Several major payment companies have launched stablecoin projects.
• Some international payment systems and certain countries are exploring stablecoin payments.
• The application of remittances, cross-border payments, and other non-cryptographic fields is increasing.

Introduction to Bridge

Bridge was founded by Sean Yu and Zach Abrams, providing software tools to help companies accept stablecoin payments. Its Orchestration API integrates stablecoin transactions into existing businesses of Web2 companies, addressing compliance, regulatory, and technical issues. The Issuance API assists users in issuing their own stablecoin and offers U.S. Treasury investment options to enhance capital efficiency.

Bridge also developed stablecoin cross-chain trading, fiat/cryptocurrency deposit and withdrawal acceptance, and provides virtual bank account services through a certain bank, making it easier for Web2 users to use stablecoin for payments.

Bridge has attracted numerous clients, including a certain aerospace company. According to reports, this aerospace company uses Bridge to collect funds across different jurisdictions and transfers them to global treasury using stablecoin. Bridge has also established collaborations with a certain blockchain network and a Bitcoin payment application. Statistics show that Bridge's annual payment volume has exceeded $5 billion.

Stripe and Bridge Collaboration

This collaboration essentially continues the story of the rise of stablecoins, and the integration will further advance Stripe's crypto payment strategy, making it easier to handle stablecoin transactions.

Bridge indicates that it will collaborate with Stripe to accelerate the adoption and utility of tokenized dollars, making it easier for global users to transfer, store, and spend currency. Since the launch of the API, global financial institutions and policymakers have gradually recognized the strategic importance of stablecoin technology.

Bridge has collaborated with cross-border payment companies and government agencies to provide services such as the disbursement of aid funds. Its virtual accounts enable fintech companies to allow global users to hold and spend US dollars.

Stripe and Bridge jointly believe that a globalized world needs better currency: one that can flow across borders, is freely accessible to anyone, and allows for nearly free remittances. They believe that significant changes in financial services require long-term accumulation, continuous improvement of products and platforms, and building trust with customers, regulators, and partners.

Stripe's Crypto Layout

Stripe recently announced the reintroduction of a cryptocurrency payment gateway for US merchants, supporting payments in stablecoins through multiple blockchains, with an option to settle in US dollars. This feature is suitable for various payment scenarios and will be expanded to subscription functionalities in the future.

Stripe first offered Bitcoin payments in 2014 but stopped in 2018 due to a decline in actual demand. This year, Stripe has allowed users in the EU to purchase mainstream cryptocurrencies and has partnered with a certain cryptocurrency exchange to support its second-layer network payments and fiat deposit services.

The essence of Stripe's business is cryptocurrency deposits and withdrawals, as well as cross-chain settlement. The acquisition of Bridge will quickly fill the related functional requirements, better serve existing customers, and expand into new markets.

Stablecoin Benchmarking Against a Major Payment Giant

A certain payment giant issued a stablecoin on Ethereum last year, and this year launched it on another public chain. This stablecoin is also actively promoting the development of the developer ecosystem outside its own ecosystem. Data shows that its market share on a certain public chain has reached 64%.

The company has clarified the evolution path for stablecoin payments towards widespread adoption: the introduction of the concept brings cognitive awakening, integration achieves payment utility, and stablecoin payments are ubiquitous. It is currently transitioning from the second stage to the third stage.

Another payment giant has also made numerous moves in the crypto space, holding a large amount of Bitcoin.

Conclusion

In the crypto space, companies with the best APIs and networking connections may stand out. More amazing acquisition deals may emerge in the future, and the era of stablecoins has just begun.