Stripe, a $70 billion fintech giant, is acquiring crypto startup Bridge for $1.1 billion. This marks Stripe’s largest acquisition to date and signifies a bigger push into stablecoin payments.
Some behind-the-scenes colors on Stripe's acquisition talks with Bridge, despite it had entered into a partnership with Paxos for the same functionhttps://t.co/Tmstpor7RW pic.twitter.com/tgvsuMopqK
— Yueqi Yang (@Yueqi_Yang) October 22, 2024
According to five sources familiar with the discussions, Stripe is in talks to acquire Bridge, a provider of infrastructure for crypto stablecoins.
The proposed acquisition is priced at $1 billion, but regulatory considerations and employee compensation remain potential hurdles. Bridge’s valuation has significantly increased from its previous funding rounds, which raised a total of $58 million. The company had also received interest about a possible Series B raise at a higher valuation.
Stripe's $1.1 billion acquisition is a remarkable outcome for Bridge.
It's also a bet that crypto-based payment will become a reality.
Scale AI, for example, already pays its contractor workers abroad using Bridge's technology.
Read more: https://t.co/Tmstpor7RW
— Yueqi Yang (@Yueqi_Yang) October 21, 2024
On October 21, Bridge co-founder Zach Abrams confirmed the acquisition on X, revealing the final price of $1.1 billion.
Stripe is paying a steep multiple for Bridge – not saying they’re overpaying, just that it’s high. @theinformation estimates that annual revenue is ~$12m. /1 ??https://t.co/YEjDARu2zK
— Noelle Acheson (@NoelleInMadrid) October 22, 2024
Stripe CEO Patrick Collison added, “Stripe is going to build the world’s best stablecoin infrastructure, and, to that end, we are delighted to welcome Bridge to Stripe.”
Bridge's and Stripe's CEOs have confirmed the crypto startup's acquisition by Stripe. Price tag not disclosed, but a source tells us @forbes it was $1.1B in the end.@DavidJeans2 and I scooped on Thursday in @forbes talks were around a $1B price tag ?https://t.co/XrwvWF4hgI pic.twitter.com/e2LYEwJESj
— Alex Konrad (@alexrkonrad) October 21, 2024
Stripe had previously halted crypto payments in 2018 due to technical difficulties and high transaction rates but resumed them in October.
Stripe’s stablecoin integration expansion
Acquiring Bridge allows Stripe to delve deeper into stablecoins, which have a collective market cap of more than $170 billion. Bridge offers software that enables businesses to accept cross-border payments made with stablecoins and has processed more than $5 billion in annualized payment volume. Its customers include government departments like the U.S. State Department and U.S. Treasury, as well as companies such as SpaceX and Coinbase.
Bridge founders Zach Abrams and Sean Yu are well-regarded entrepreneurs in the crypto and payments sectors. They previously built a Venmo competitor called Evenly, which they sold to Block in 2013. Abrams has held senior roles at Coinbase and Brex, while Yu has worked at DoorDash and Airbnb.
Stripe has made several acquisitions in recent years, including TaxJar in 2021 and Lemon Squeezy in July. The company also announced a new “Pay with Crypto” feature in October, integrating stablecoins with its customer checkout offerings and charging a 1.5% transaction fee. Stripe president Will Gaybrick mentioned that stablecoins could provide more efficient payment methods for some consumers, especially outside the U.S.
