The Rise of Stablecoins and Stripe's Strategic Layout

Stablecoins are sweeping the global financial sector, with astonishing growth rates and trading volumes. As one of the giants in the payment industry, Stripe recently acquired the stablecoin API service provider Bridge for $1.1 billion, a move that has garnered widespread attention in the industry. This article will delve into the development trends of stablecoins, Bridge's business model, and the strategic significance of Stripe's acquisition.

Stablecoin: The Killer Application of Web3

According to a research report from a well-known venture capital firm, stablecoins have become one of the most promising applications in the Web3 field. Thanks to the popularity of smartphones and advancements in blockchain technology, stablecoins are driving an unprecedented financial inclusion revolution.

Stablecoins greatly simplify the process of value transfer. Their quarterly trading volume has exceeded more than twice that of a well-known payment company, with the asset value settled each year reaching hundreds of billions of dollars. In terms of daily active addresses, stablecoins account for nearly one-third of cryptocurrency usage, second only to decentralized finance (DeFi).

Currently, the total supply of stablecoins is approximately $170 billion, with around 20 million addresses engaging in stablecoin transactions each month, and over 120 million addresses holding a non-zero stablecoin balance. These data fully demonstrate that stablecoins are building a monetary ecosystem parallel to the traditional financial system.

It is worth noting that the application of stablecoins in non-cryptocurrency fields is also continuously expanding, such as remittances, cross-border payments, payroll, and trade settlement. Several tech giants and financial institutions have begun to lay out stablecoin projects, and even some sovereign countries are exploring the potential value of stablecoins.

Bridge: A bridge connecting traditional finance and the crypto world

Bridge is a company focused on providing stablecoin API solutions, founded by two experienced entrepreneurs. The company's core products include the Orchestration API, which helps businesses integrate stablecoin payment functions, and the Issuance API, which supports users in issuing their own stablecoins.

Through this API system, combined with Bridge's independently developed cross-chain trading, fiat to cryptocurrency exchange, and virtual bank account services, Bridge provides a convenient stablecoin usage platform for traditional enterprises. Users can quickly transfer funds globally, realize stablecoin payments, and enjoy USD and EUR account services.

Bridge's client base includes well-known enterprises from various industries, including a certain renowned aerospace company. According to reports, the company utilizes Bridge's services to receive multi-currency payments across different jurisdictions and manages global funds uniformly through stablecoin.

In terms of financing, Bridge has previously secured $58 million in investment, with investors including several top venture capital firms. It was recently acquired by Stripe for $1.1 billion, setting the record for the largest merger and acquisition deal in the cryptocurrency industry to date.

Stripe's Cryptocurrency Strategy

The collaboration between Stripe and Bridge will further promote the implementation of its "Pay With Crypto" strategy. By integrating Bridge's technology, Stripe will be able to process stablecoin transactions more efficiently, enhancing the transparency and security of payments.

Bridge stated in an official announcement that both parties will work together to promote the widespread use of tokenized dollars, enabling global users to transfer, store, and consume currency more conveniently.

It is worth mentioning that Stripe attempted to integrate Bitcoin payments as early as 2014, but ultimately suspended the service due to technological limitations at the time. Recently, Stripe has restructured its approach to cryptocurrency payments, allowing U.S. merchants to accept multiple cryptocurrency payments and partnering with a well-known cryptocurrency exchange to expand its crypto business landscape.

The Stablecoin Strategies of Payment Giants

Apart from Stripe, other giants in the payment industry are also actively laying out their strategies in the stablecoin market. A well-known online payment company has issued its own stablecoin on multiple public blockchains and is promoting the construction of its ecosystem. The company has proposed a three-phase roadmap for the mass adoption of stablecoin payments: concept introduction, integration realization, and widespread application.

Another payment giant is continuously making efforts in the Bitcoin field, not only holding a large amount of Bitcoin but also diversifying its layout in the crypto space.

Conclusion

With the rapid development of stablecoins and the active participation of mainstream financial institutions, we can foresee that in the future, M&A activities in the field of crypto payments may become more frequent and larger in scale. This trend will further promote the integration of traditional finance and the crypto economy, bringing profound impacts to the global financial system.