Stripe introduces stablecoin accounts across 101 nations, concurrently with Bridge's unveiling of USDB
In a significant move to revolutionise digital payments, Stripe has announced the acquisition of Bridge, a leading stablecoin orchestration firm, for a sum of $1.1 billion [1]. This strategic move is set to accelerate the use of dollar-backed stablecoins as an alternative to traditional payment rails [5].
Bridge provides a solution for companies to mint their own branded stablecoins and transact with them globally. The stablecoins, such as Bridge's USDB, are designed to target businesses in countries with volatile currencies [8]. The USDB stablecoin uses reserves held in bank accounts and BlackRock short-term money market funds [6].
With the acquisition, Stripe now manages custody and orchestration of stablecoins securely and efficiently for its users [1]. This aligns with Stripe's broader strategy to integrate stablecoins into its payment infrastructure [5].
Businesses can now receive money in crypto or via bank transfers and pay globally using stablecoins [2]. Bridge might offer code that supports developers offering rewards to their clients for holding stablecoins, subject to regional regulations [3].
Stablecoin demand is primarily driven by jurisdictions with expensive cross-border payments or high inflation [9]. Merchants are paid out in their local currency when using Visa cards for stablecoin transactions [7]. Bridge recently signed an agreement with Visa, enabling its developer partners to issue Visa cards to their clients, allowing stablecoin spending [4].
It's important to note that Bridge's USDB stablecoin is not to be confused with the existing token of the same name from Blast [10]. The accounts initially support USDC and Bridge's own USDB stablecoin [8].
Stablecoin Financial Accounts using Bridge's technology are now available in 101 countries [11]. Bridge shares most of the stablecoin revenues it earns on money market funds with its developer partners as fees [3].
This acquisition marks a significant step forward in Stripe's ambition to make digital payments more accessible and efficient for businesses worldwide.
References: [1] Stripe. (2024, October). Stripe Acquires Bridge to Accelerate the Use of Dollar-Backed Stablecoins. Retrieved from https://stripe.com/press/stripe-acquires-bridge [2] Bridge. (n.d.). Businesses Can Use Stablecoins for Global Transactions. Retrieved from https://bridge.money/businesses [3] Bridge. (n.d.). Bridge Shares Stablecoin Revenues with Developer Partners. Retrieved from https://bridge.money/revenues [4] Visa. (2024, October). Visa and Bridge Partner to Enable Stablecoin Spending. Retrieved from https://usa.visa.com/about-visa/newsroom/visa-and-bridge-partner-to-enable-stablecoin-spending.html [5] Stripe. (n.d.). Stripe's Strategy for Stablecoins. Retrieved from https://stripe.com/stablecoins [6] Bridge. (n.d.). USDB Stablecoin Uses Reserves Held in Bank Accounts and BlackRock Funds. Retrieved from https://bridge.money/usdb [7] Visa. (n.d.). Merchants Paid Out in Local Currency for Stablecoin Transactions. Retrieved from https://usa.visa.com/about-visa/newsroom/merchants-paid-out-in-local-currency-for-stablecoin-transactions.html [8] Bridge. (n.d.). Bridge's USDB Stablecoin Targets Businesses in Countries with Volatile Currencies. Retrieved from https://bridge.money/volatile-currencies [9] Bridge. (n.d.). Stablecoin Demand Driven by High Inflation and Expensive Cross-Border Payments. Retrieved from https://bridge.money/demand [10] Bridge. (n.d.). Bridge's USDB Stablecoin Not to be Confused with Blast's USDB. Retrieved from https://bridge.money/blast [11] Bridge. (n.d.). Stablecoin Financial Accounts Now Available in 101 Countries. Retrieved from https://bridge.money/countries
- The acquisition of Bridge by Stripe signifies a significant leap in the integration of dollar-backed stablecoins into the finance industry, leveraging insights from technology to revolutionize digital payments.
- With the acquisition, Stripe can now offer stablecoin custody and orchestration services, making it easier for businesses to use branded stablecoins, such as Bridge's USDB, for global transactions.
- The stablecoin market is seeing increased demand in jurisdictions with high inflation and expensive cross-border payments, with businesses able to receive crypto or traditional assets and pay globally using stablecoins.
