The American tech company Stripe is in negotiations to acquire the crypto startup Bridge for $1.1 billion. If the deal goes through, it will mark the largest acquisition in Stripe's history and in the cryptocurrency industry as a whole.
The market capitalization of the fintech giant increased to $70 billion in September, thanks to a recent share purchase from Sequoia. The new agreement could significantly boost these figures. However, talks between Stripe and Bridge are still ongoing. The final agreement will depend on regulatory aspects and employee compensation terms.
Why does Stripe need Bridge?
Bridge enables businesses to accept payments in stablecoins. Essentially, it serves as a bridge between traditional finance and the cryptocurrency world.
The startup's founders, Sean Yu and Zach Abrams, sold their previous startup Evenly to Block in 2013. Bridge has already raised $58 million in investments and has a strong customer base, including government agencies and companies such as SpaceX and Coinbase.
According to Forbes, if the acquisition occurs, it will help Stripe delve deeper into the stablecoin market, which has a total capitalization exceeding $170 billion.
Stripe is actively investing in the cryptocurrency sector and has previously acquired companies TaxJar and Lemon Squeezy. In October, the company announced a new feature called "Crypto Payments," which integrates stablecoins into its payment system for customers. Stripe president Will Gebbriel emphasized that stablecoins could be a more efficient means for payments, particularly outside the United States.
Representatives from Stripe declined to comment on the rumors regarding negotiations with Bridge.
Source: Forbes
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