Stripe’s Acquisition of Bridge Highlights Uses of Stablecoins

Broker Bernstein stated in his research report that Stripe’s acquisition of Bridge emphasizes the importance of the use of stablecoins in public blockchains.

The report noted that US dollar-denominated stablecoins are currently the cheapest method of cross-border payments, costing only 1-2 basis points.

Payment processor Stripe has acquired stablecoin platform Bridge for $1.1 billion, according to a statement made by TechCrunch founder Michael Arrington on Sunday and later confirmed by both companies.

Bernstein noted that the Bridge deal is the largest crypto acquisition by a major payments company to date.

Analysts wrote that companies like Bridge “play an important role by creating API software for businesses to integrate stablecoin payments into their regular payment experiences.”

In its report published yesterday, investment bank Architect Partners stated that this agreement highlights the “awareness and benefits of stablecoin-based payments” and stated that these currencies are increasingly used by non-crypto companies.

Additionally, the report emphasized that a greater challenge to the traditional financial system (TradFi) is difficult.