Author: insights4vc Translation: Shan Oppa, Golden Finance

This month, Stripe completed a deal to acquire Bridge for US$1.1 billion. This strategic move demonstrates Stripe’s commitment to blockchain-based payments, positioning it as a key player in the evolving digital finance field. Stablecoins (currently with a market size of US$200 billion) have become an integral part of global transactions, powering nearly 50% of cross-border digital payments. It is expected to reach $400 billion by the end of the year, and Stripe's integration of Bridge technology enables instant, low-cost settlement, enhanced merchant payments and global transfers, while competing with PayPal, Visa and Circle. As regulators develop a stablecoin framework, Stripe's move highlights a broader shift: Fintech giants adopt blockchain to enhance rather than disrupt traditional finance. The following paper prepared by our team explores the implications of Stripe's stablecoin strategy, its role in the payments field and its impact on financial inclusion and institutional adoption.

1. Introduction Founded in 2010 by Patrick Collison and John Collison, Stripe is now a leader in the fintech sector, known for its developer-centric payment infrastructure that supports businesses around the world. By 2024, businesses using Stripe will process payments of $1.4 trillion (a year-on-year increase of 38%), equivalent to about 1.3% of global GDP. Stripe’s customer base ranges from startups to large enterprises, including half of the Fortune 100 companies and 80% of the top cloud and AI unicorns. After more than a decade of working in online payments, Stripe has expanded into billing, finance and other financial services. It is worth noting that Stripe achieved profitability in 2024 and made huge reinvestment in R&D, far exceeding its industry peers. A strong financial foundation allows Stripe to pursue emerging technologies such as stablecoins and artificial intelligence, which management believes are transformative forces that reshape the payment landscape.

Stripe's relationship with cryptocurrency has returned to its origin. In 2018, Stripe canceled support for Bitcoin payments due to low volatility and low usage. But by 2022, Stripe will re-enter the cryptocurrency space through partnerships—trial USDC on Polygon (USD)Coin) Payment allows creators to earn income in the form of stablecoins.

Stripe's approach is to abstract the complexity of blockchain for users: "Stripe will handle all the crypto-related complexity...the platform can avoid storing or transferring cryptocurrencies themselves," the company noted in its cryptocurrency payment release.

In early 2024, Stripe announced the “return of cryptocurrency” and introduced support for stablecoin payments (USDC and PayPal’s PYUSD) in its products. The motivation for returning to cryptocurrencies is due to customers’ demand for faster and more global payment methods. By positioning stablecoins as another currency in Stripe’s infrastructure, Stripe demonstrates its belief that Web3 technology can seamlessly integrate into mainstream finance.

Stablecoin 101 – Role in modern finance

Stablecoins are cryptocurrencies pegged to stable assets (usually 1:1 pegged to fiat currencies such as the US dollar). This peg allows them to combine the price stability of traditional currencies with the efficiency of encrypted networks. In practice, stablecoins play several key roles:

Cross-border payment: Stablecoins can achieve nearly instant and 24/7 cross-border transfers, and are inexpensive and do not need to rely on agency banks. This is transformative for remittances and global commercial payments—using stablecoins can reduce the average remittance cost by about 4.5% compared to traditional channels. For example, a freelancer in Nigeria can receive US dollar stablecoins from US clients within minutes and convert them into local currency, avoiding high bank fees and delays.

DeFi and liquidity: Stablecoins are the lifeblood of cryptocurrency trading and decentralized finance. They provide a stable media of transactions and store of value on the blockchain platform. As of 2024, stablecoins have participated in more than 30% of Ethereum transactions and have become the main trading pair of cryptocurrencies, accounting for the main source of exchange liquidity. This deep liquidity supports the DeFi ecosystem, allowing borrowing and trading without touching fiat currencies.

Financial inclusion and dollarization: In the face of high inflation or restricted banking services, stablecoins provide an available dollar-based alternative. Users in Latin America, Africa and elsewhere are increasingly saving in dollar-backed stablecoins to preserve their value. They are still on credit cards or PayPal yetand promote e-commerce and micro-loans in the region. By 2024, stablecoin usage in emerging markets surged, with global adoption increasing by 22% year-on-year, mainly due to demand against inflation digital dollar.

Stablecoin market size and trends in 2025

Stablecoin market has developed from a niche market to an important part of the financial system. At the end of 2024, the total market value of stablecoins exceeded US$200 billion for the first time, surpassing the peak of the cryptocurrency boom in 2021-22. This growth has recovered as the cryptocurrency market recovers and more businesses adopt stablecoins for payments. Tether's USDT (the largest stablecoin) hit an all-time high

circuit volume was $139 billion, while Circle's USDC was close to $41 billion, and the two together dominated. Industry forecasts are optimistic: asset management company Bitwise predicts that the stablecoin market may double to $400 billion by 2025 with the help of clear U.S. regulations. In addition to the original market capitalization, usage indicators also show that stablecoins are gaining mainstream attention.

At present, more than 70 regions have accepted stablecoin payments in some form (through exchanges or merchant platforms), and the global stablecoin transaction volume reaches an average of US$7 billion per day. Even payment giants have joined in – Visa expanded stablecoin settlement to the Solana blockchain in 2023 to speed up cross-border credit card payments, and Mastercard is piloting stablecoin integration for banking partners. Regulators are also stepping up scrutiny to ensure stablecoins are managed safely.

Why Stripe bets on stablecoins

In this context, Stripe's entry into the stablecoin field is a reasonable extension of its mission of "improving Internet GDP". Stablecoins can significantly improve the speed and coverage of online commerce, especially cross-border commerce. By eliminating intermediaries, a stablecoin transaction can be settled at a fee of several cents in seconds, while a traditional international wire transfer can take several days and requires 5-10% of foreign exchange and bank fees. For Stripe, integrating stablecoins is expected to unlock new markets and use cases (for example, paying to sellers who cannot easily send money through banks) and provide future guarantees for its platform as finance becomes more blockchain-based. Importantly, Stripe can integrate stablecoins without changing the user experience: merchants can price in US dollars as usual, if more efficientHigh, Stripe can convert and deliver funds in the backend via stablecoin tracks. In Stripe’s 2024 annual letter, the founders emphasized that stablecoins (and artificial intelligence) are innovations that will “reshape” the payment landscape in the coming years. Expanding to stablecoin-powered payments is in line with Stripe's strategy to provide businesses with a comprehensive financial toolkit—from card processing to fund management—and now also adds encryption.

2. Bridge Acquisition

In February 2025, Stripe completed the acquisition of Bridge (also known as "The Bridge", a startup focused on stablecoin infrastructure. This section provides an overview of Bridge’s technology and business, as well as its financing details, and why it is a powerful goal for Stripe.

Bridge is an API-first platform that enables developers and businesses to integrate stablecoin transactions into their applications with minimal effort. Essentially, Bridge offers "stablecoin payment as a service". Companies can access Bridge’s API and gain the ability to send, receive and convert stablecoins without building any blockchain pipelines themselves.

Bridge's main functions

Supports multiple currency stablecoins

Bridge supports a series of major US dollar-backed stablecoins (USDC, USDT, PYUSD, etc.), and can be connected with multiple blockchain networks (Ethereum, Solana, Polygon, etc.). This allows customers to trade with any stablecoin or chain that is most convenient, while Bridge handles the transaction. The platform also supports issuing new stablecoins, which means businesses can create their own branded stablecoins or digital dollars through Bridge’s system. This issuance capability is similar to providing private-brand stablecoin mints powered by reserves, which some fintech companies or markets may use for loyalty or internal purposes.

Coordination and conversion

Bridge is its ability to coordinate complex flows of capital involving fiat and cryptocurrencies. For example, a U.S. company could use Bridge to pay a supplier in Mexico: USD to USDC, transferred abroad, and optionally exchanged to local currency on the other end—all through Bridge is done. The platform handles individual up/downhills, connecting to local banks, mobile wallets or cash services. Bridge has established relationships with regional payment processors such as exchanges such as Bitso in Latin America and fintech companies such as Yellow Card in Africa to facilitate last-mile conversions. It is essentially a bridge between the world of stablecoin and traditional finance (hence the name), so the final payee can get value in whatever form they need, whether it is a stablecoin or a local fiat currency.

Speed ​​and cost-efficiency

Bridge achieves near-real-time settlement by leveraging encryption tracks. It usually takes several days (via proxy bank or wire transfer) to complete with stablecoins in just a few seconds. Costs are also reduced – stablecoin transfers usually only require a small portion of equivalent bank fees, especially for cross-border payments.

Bridge revenue director Marco Mahrus described this as building a new global framework on top of the existing financial system: Once you experience digital dollar payments that are always online, “people don’t have to wait anymore, and do SWIFT or wire transfers during bank hours”. This resonates with businesses operating globally and needing to transfer funds 24/7.

Usercases and clients

Before the acquisition, Bridge had demonstrated the needs of its platform through a series of use cases:

Enterprise Finance: It is worth noting that SpaceX is a Bridge customer, using stablecoins for global financial management. SpaceX uses Bridge to convert and transfer cross-border funds, using stablecoins as an efficient medium. This use of top private companies in the real world highlights the attractiveness of stablecoins outside of cryptocurrency transactions.

Payment and Payroll: Platforms such as Airtm (digital wallet) use Bridge to pay wages to gig workers and contractors around the world in stablecoins. For example, a data tag company uses Bridge to pay wages to hundreds of remote freelancers; workers can choose to hold stablecoins or exchange them for local cash through Bridge integration. These use cases demonstrate the practicality of stablecoins in the global digital economy, which enables the emergence of cross-border job opportunities to reduce the friction of micropayments.

FinTech and Exchange: Bridge works with fintech applications targeting emerging markets, including some in Africa and Latin America, to provide U.S. dollar savings and payment services. For example, it partnered with exchanges such as Bitso to provide Mexican businesses with MXN to USD stablecoin remittance channels. It also designed conversions between different stablecoins for customers like Coinbase (such as converting USDT on Tron to USDC on Coinbase’s Base network)—demonstrating its interoperability in the crypto ecosystem.

Humanitarian and : According to Bridge, even aid organizations and U.S. entities use their services for rapid distribution. Stablecoins are especially useful for disaster relief or foreign aid, and in these cases it is crucial to deliver funds to the recipients quickly and transparently. Bridge’s compliance and conversion capabilities will allow aid agencies to send stablecoin-based aid and allow recipients to cash in local currency if needed.

Finance, Investor and Valuation Trajectory

Bridge stood out in 2024 with a lot of support. Here is a breakdown of its financing history and key supporters:

Seed Fund (early 2022): Bridge was founded in April 2022 by Coinbase and Square (Block) alumni Zach Abrams and Sean Yu. They had previously founded a payments startup (Evenly) which was later acquired by Square. Bridge’s 2022 seed fund has not disclosed details, but it includes investors focusing on cryptocurrencies. It is worth noting that 1confirmation is involved, and a boutique fund called Department of XYZ (founded by former NYDFS regulator Matt Homer and regulates stablecoins) provides compliance guidance. Former Airbnb/Stripe product manager and current fintech investor Jonathan Golden is also an angel investor.

Series A (mid-2024): In August 2024, Bridge publicly launched and announced a $40 million Series A financing. The round was led by top venture capital firms Sequoia Capital and Ribbit Capital, Index Ventures and Haun Ventures (Kati)e Haun’s crypto fund) is involved. Also joining funds focused on fintech, such as Oak HC/FT and early supporters (1confirmation, Department of XYZ, etc.). Bridge raised a total of $58 million at this time, as some seed funds were not announced before. In this Series A round, Bridge is valued at approximately $200 million. Achieving a valuation of $200 million within approximately 2 years of its establishment reflects investors' confidence in Bridge's technology and market fit. In fact, Sequoia Capital revealed that Bridge’s annual payments run rate had reached $5 billion at the time of Series A, with estimated revenues of $5 million to $12 million (assuming expense ratios of 0.1-0.25%) — a strong early momentum helped justify its valuation.

Acquired by Stripe (October 2024 - February 2025): Stripe's interest in Bridge began in October 2024. TechCrunch founder Michael Arrington broke the news that Stripe is negotiating to acquire Bridge for about $1 billion.

In late October, Stripe CEO Patrick Collison said on Twitter that stablecoins are "room-temperature superconductors for financial services", suggesting their strategic principles.

The transaction was confirmed and officially announced in February 2025 with a transaction amount of US$1.1 billion. The price is 5.5 times the Series A valuation (less than a year), highlighting Stripe's emphasis on Bridge's capabilities. This is by far one of the largest crypto-related mergers and acquisitions, surpassing even some notable crypto acquisitions in previous years. For Stripe, which is still a private company, such a $1 billion acquisition is a significant investment, comparable to the use of funds on the scale of an IPO. The acquisition, in cash and stock form (details are not disclosed), brings about 45 Bridge’s employees to the Stripe team.

3. Stripe's strategic basis

First, the acquisition of Bridge allows Stripe to immediately have complete stablecoin capabilities without having to spend years internally building it. Stripe is known for its developer APIs and could have tried to start from scratchStart developing the stablecoin API. However, the crypto field (fast development of protocols, heavy regulatory barriers, demand for professionals) has brought about a steep learning curve. Bridge brings a mature product and a team that is well-established in both crypto and payments.

As the Architect Partners FinTech report pointed out, "this acquisition makes Stripe immediately a major competitor in the payments field based on digital assets."

Stripe has obtained technology to support instant global stablecoin trading and a team with extensive experience in large-scale operations. Given that Bridge has transferred billions of dollars to its clients, Stripe can integrate the technology with much lower risk than new projects.

Payment Network

Stripe's vision has been a one-stop infrastructure for online transfer of funds—from credit and bank debit cards to local payment methods. Stablecoins are becoming the next track for global payments, similar to a new payment network that operates with Visa, SWIFT and ACH. By integrating stablecoins, Stripe has expanded its coverage. Businesses on Stripe can eventually accept payments from customers’ crypto wallets or pay revenue to users’ stablecoin wallets through Stripe’s interface. Bridge’s API may be incorporated into Stripe’s existing products:

Stripe Connect and Treasury: Stripe Connect (for market payments) can use Bridge to pay stablecoins to platform sellers or gig workers (if needed), thus covering users in /regions where bank direct payments are slow or costly. For example, the African carpooling app using Stripe can pay drivers immediately at USDC overnight, which traditional banks can’t do. Stripe Treasury (a stored value account for businesses) can allow holding stablecoin balances or converting between fiat and stablecoins with one click. These capabilities make Stripe's ecosystem even stronger for global enterprises.

Cross-border payments: Stripe can process international transactions through stablecoins to optimize speed and fees. If a Brazilian customer pays a US merchant, Stripe may convert the payment internally into a US dollar stablecoin, transmitting it via a blockchain instead of a proxy bank, and thenDeposit money to US merchants, thereby compressing settlement time from days to seconds.

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Neetika Bansal, business leader at Stripe, pointed out that the stablecoin infrastructure has had a "huge impact" and "will play a key role in promoting the development of cross-border trade."

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This implies that Stripe will use Bridge to offer faster cross-border payment products, potentially competing with traditional remittance providers.

New Merchant Service: We may see Stripe offer merchants the option to accept customers' stablecoins. Currently, Stripe mainly processes traditional currency payments (cards, banks, etc.) and then pays to merchants in fiat currency. With Bridge, Stripe can act as a two-way bridge: not only can you pay, but you can also accept stablecoin payments on behalf of the merchant and convert them into fiat currency. This will give Stripe direct competition with crypto payment gateways such as BitPay or Coinbase Commerce, but with a huge advantage - integration into Stripe's widely used checkout API and dashboard. Merchants can check "Accept Cryptocurrency", Stripe/Bridge will handle the acceptance and conversion of stablecoins in the background and settle in the currency selected by the merchant. Such a service will attract crypto-centric customers to Stripe merchants while keeping merchants safe from cryptocurrency fluctuations (because stablecoins have value and can be converted automatically).

Enterprise and financial solutions: With Bridge's technology, Stripe can meet corporate financial needs. Large companies like SpaceX already use Bridge for financial operations; Stripe can now promote it as a corporate product. For example, multinational corporations can use Stripe to deposit funds into US dollar stablecoins to hedge local currency risks, or make inter-cross-border corporate transfers over the weekend. Stripe can even provide customers with stable cash gains (through DeFi lending or custodial solutions) to enter the realm of where fintech meets DeFi.

Competitive Positioning

Financial Technology and payments are in a competition to integrate encryption capabilities, and Stripe's acquisition of Bridge puts it ahead in many aspects:

PayPalAnd Traditional Participants: PayPal made headlines by launching its own dollar stablecoin, PYUSD, in 2023. PayPal’s strategy is to leverage its large consumer base (more than 400 million accounts) to drive the use of stablecoins in payments and transfers. By the end of 2025, PayPal's goal is to get more than 20 million merchants to use PYUSD for payment or settlement. However, Stripe serves a developer-driven audience and thousands of online platforms that together reach hundreds of millions of users. With Bridge, Stripe can provide multiple stablecoins, network-independent solutions (supports USDC, USDT, PYUSD, etc.), which may be more flexible than PayPal's single-coin approach. Additionally, Stripe’s core competitiveness is to provide infrastructure rather than consumer wallets, which means it can support stablecoin transactions behind the scenes for many other fintechs and applications. In fact, Stripe may become the default backend for stablecoin payments on the network, while PayPal may focus on its own front-end ecosystem. This makes Stripe both a competitor to PayPal, Visa and other companies that may leverage Stripe's stablecoin channel in the future.

Credit Card Network (Visa/Mastercard): Visa and Mastercard have been trying to use stablecoin settlement to improve their cross-border processes. However, these efforts are essentially invisible to the end user (they make the internal pipeline more efficient). By contrast, Stripe will show the stablecoin functionality to end users (enterprises and developers), effectively eliminating the intermediary of certain functions of the credit card network in certain transactions. If the merchant can receive payment from the customer’s crypto wallet via stablecoins, the transaction may bypass Visa completely. Stripe, on the other hand, can also work with credit card networks (for example, using Visa’s USDC settlement to optimize payments from Stripe to merchant banks). In any case, having an in-house stablecoin technology gives Stripe a strategic choice – it can choose the cheapest and fastest route for every payment (whether it is an ACH, credit card, or stablecoin) and even mix them together. This flexibility can reduce costs for Stripe customers and reduce the pressure on traditional network expenses.

Native provider of cryptocurrency: there are Circle (Ucryptocurrency native companies like SDC issuers) and Ripple (its RippleNet for cross-border payments) are designed to serve fintech companies and banks. For example, Circle provides businesses with APIs to accept and pay USDC and has established partnerships with companies such as Checkout.com. With the acquisition of Bridge, Stripe is actively entering the space – it can now offer similar stablecoin API services, but bundled with its wider suite (fraud prevention, identity verification, etc.). Stripe basically internalizes the partnerships that could have been formed with Circle or Ripple. It also goes beyond smaller cryptocurrency payment processors. Few of these cryptocurrency startups have the same trust and existing customer base as Stripe. Now that Stripe can offer cryptocurrency payments, there is no reason for Web3 startups or global markets to integrate professional providers; they can continue to use Stripe to meet fiat and stablecoins needs.

Stripe’s motivation – Key drivers:

Why is Stripe willing to pay more than $1 billion to acquire Bridge?

Customer demand for faster global payments: Stripe supports many international businesses (SaaS companies, online markets, gig platforms). These customers have pain points, and stablecoins can address them—whether it is paying for remote contractors in PayPal’s limited coverage/region, or instant transfer of funds between their own entities across regions. By providing stablecoin solutions, Stripe addresses these pain points and increases its value to customers, which can increase retention and attract new customers.

Diverent sources of income: Stripe used to make money by using credit cards. Stablecoin transactions vary in economics (usually very low on-chain fees). Stripe can create new sources of income by charging stablecoin exchange, custody, or API usage fees. For example, Stripe may charge a small basis point fee to transfer stablecoins into a bank account or provide liquidity between currencies. In addition, stablecoin floating funds (idle balances) can generate interest income if properly managed. Since stablecoins on Stripe may have billions of dollars in flow, even surcharges or floating interest can be quite substantial. Essentially, Stripe can monetize cryptocurrency traffic in a way similar to monetizing credit card traffic.

Defensive initiatives and ensuring relevance: If Stripe does not adopt stablecoins, other companies may fill this gap. Startups such as Ramp Network or MoonPay have enabled fiat-to-cryptocurrency channels. Even traditional banks are exploring the issuance of their own stablecoins for settlement. Stripe risked de-mediation in some emerging use cases (for example, Web3 gaming platforms might bypass Stripe for crypto-native payment solutions). By acquiring Bridge, Stripe ensures that it remains the default choice for online businesses, covering both traditional and new forms of capital flows. It is a defensive hedging that cements Stripe’s moat against interference.

Regulatory preparation: Regulatory preparation is a reason that people often overlook, namely acquisition rather than establishment. Bridge has obtained currency trading licenses in 22 U.S. states and even set up regulated entities in Europe (Poland) to conduct crypto activities. This legal basis is valuable and time-consuming to copy. With Bridge, Stripe has obtained a compliance framework for handling stablecoins (KYC/AML procedures, licensing, relationships with bank partners to exchange stablecoins, etc.). Stripe's leadership may have calculated that once U.S. federal regulations allow widespread use of stablecoins, they want to act immediately. Bridge's team includes legal and compliance experts who can help Stripe deal with upcoming laws (such as reserve requirements or registration of stablecoin providers). In short, Bridge has increased Stripe's regulatory compliance in the crypto space by 1-2 In the short term, Stripe may provide stablecoin payments to merchants and platforms. This may mean an update to Stripe Connect, which allows the platform to choose to pay users in stablecoins (with Stripe processing conversions through Stripe). The pilot project may focus on regions such as Latin America, Africa, and Southeast Asia, where stablecoin adoption rates are high and payment infrastructure is weakest.

left;">Stripe may introduce multi-currency stablecoin settlement for cross-border transactions. Customers pay in one currency, merchants receive another currency, Stripe uses stableFixed coins as a bridge to obtain more favorable exchange rates. This can be combined with Stripe's existing Forex Exchange Services, but provides enhanced functionality through instant settlement.

For developer users, Stripe can expose new API endpoints (essentially rename Bridge's API to Stripe Crypto or similar) so that any application can programmatically send stablecoins to a blockchain address or accept stablecoin payments. This makes Stripe a competitor to crypto payment APIs like Coinbase Commerce. Given Stripe's huge developer community, this move could accelerate Web2 to Web3 integration in many services.

Security and custody will be the focus: Stripe needs to ensure that the processing of stablecoins (like cash is bearer notes) is strongly secure. It's not surprising if Stripe works with a custodial wallet provider or acquires a custodial wallet provider, or integrates a hardware security module to protect the private keys of stablecoin transactions. From a user experience perspective, Stripe may abstract the wallet—for example, a user can provide a blockchain address for payment, or if they don’t have one, Stripe can generate a custodial wallet for them to collect funds later.

Brand and User Trust: Stripe may not display the “Bridge” brand for a long time; it may package these features under the Stripe brand (such as “Stripe Stablecoin” or part of the Stripe payment API). However, for institutional clients, Stripe can point out Bridge’s track record and the fact that Coinbase and SpaceX are already customers of the technology, proving that Stripe’s stablecoin service is tested in practice.

Impact on Stripe's business (2025 and beyond)

Acquiring and integrating Bridge may have a profound impact on Stripe's business model:

Stripe's total potential market has expanded. It can now take advantage of on-chain transaction volume and potentially serve crypto-native businesses that were previously unavailable. This opens up a new customer base.

Stripe's growth may be worthExternal push. The company's payment volume has grown rapidly (38% in 2024); with stablecoins, it may grow faster, or at least seize the growth of its cryptocurrency competitors. It is conceivable that by the end of 2025, a large portion of Stripe's trading volume may come from stablecoin trading, rather than card swiping. Stripe stressed that businesses on its platform are growing at a rate of seven times the S&P 500 average—a figure that supports stablecoins, such as global markets, could push that number even higher.

This may affect profits. Crypto transactions may be less expensive than credit card payments (no exchange fees, etc.), so Stripe may not charge about 2-3% like credit card transactions. However, Stripe can build a fee structure in different ways—it may charge a fixed fee or a small conversion fee for each payment. If done well, stablecoin services can be a high-profit surcharge (because once established, the cost of operating a blockchain infrastructure is relatively low). Additionally, by providing more transaction volume and new use cases, Stripe can compensate for losses in charge rate per transaction through scale.

In the long run, Stripe is positioned as a world of financial hybrids: partly traditional finance and partly cryptocurrency. If central bank digital currency (CBDC) appears (such as digital dollars), Stripe's infrastructure now acquired through stablecoins can be expanded to CBDC. Stripe has mastered the way to deal with digital fiat equivalents, so digital euros or digital dollars can be easily supported in the future. In this way, the acquisition of Bridge is also a hedge against the future of currency - no matter what form the currency takes (cards, bank accounts, stablecoins, CBDC), Stripe intends to become a platform for currency circulation.

4. The future of stablecoins and the role of Stripe

As Stripe boldly enters the stablecoin field, it is worth studying the development direction of stablecoins and the broader background of how Stripe will develop in the Web3 field. This section discusses macro trends, regulatory developments, market forecasts, and potential future strategic initiatives for Stripe.

The macro trend adopted by stablecoins

Stablecoins in 2025 will combine traditional finance and cryptocurrencies. Here are some notable trends:

Mainstream institutional interest: Once the field of cryptocurrency trading counters has attracted financial executives andInterest of asset managers. We see major financial institutions exploring stablecoins – for example, Bank of America will report to study stablecoins applications for settlement and custody in early 2025. Payment companies are not alone; brokerage firms and even central banks are analyzing how privately issued stablecoins interact with the money supply.

Arise of non-USD stablecoins: Although US dollar stablecoins dominate (with a market capitalization of more than 95%), there is an increasing interest in stablecoins denominated in other currencies (euro, pound, yen) and even commodities (such as gold-backed tokens). By 2025, euro-backed stablecoins and other stablecoins will gradually emerge as Europe’s regulatory transparency increases. This could lead to a more multi-currency stablecoin ecosystem. Stripe may support non-USD stablecoins in the future to facilitate EU merchants to make on-chain payments between euros and euros, thereby further integrating into the local financial system.

Consumer payments and e-commerce: Stablecoins are moving towards consumer-oriented uses. Some crypto fintech applications come with debit cards, allowing users to use stablecoin balances, essentially using stablecoins for daily purchases. A 2024 statistics show that as more consumers use stablecoins for e-commerce checkouts and remittances, the use of retail stablecoins has jumped 35%. In addition to the failure of projects such as Facebook (Meta) Diem, the concept of digital currencies used worldwide is being implemented through USDT, USDC, etc., albeit organic. Stripe’s move could catalyse this further – if Stripe enables stablecoin payments in thousands of online stores, consumers may start seeing the “Pay with USDC” option as well as credit cards at checkout in the near future.

Integration of DeFi and TradFi: Stablecoins continue to support DeFi applications (borrowing, income farming, etc., TVL in DeFi exceeds US$120 billion, partly supported by stablecoins). Now TradFi participants are focusing on this benefit and functionality. For example, fintech startups put cash into DeFi through stablecoins (within a regulated framework) to provide customers with higher returns. This blur of boundaries suggests that in some cases, stablecoins will be seen as a new money market tool. Stripe may work with financial institutions to provide merchants with secure gains from stablecoin balances, effectively connecting Stripe customers with DeFi earnings – a speculative but interesting possibility.

Regulatory landscape

The rapid growth of stablecoins has prompted global regulators to formulate rules to reduceLow risk and incorporating it into the financial system:

U.S.: The United States has been actively debating the specific legislation of stablecoins. The main concern of regulators is measures to ensure that issuers have sufficient reserves (to prevent runs), transparency and prevent abuse (such as money laundering). The federal stablecoin bill is expected to gain support in Congress in 2025. Such laws may require issuers to obtain licenses (even banks), audit reserves, and establish redemption standards. For Stripe, as a facilitator rather than an issuer, regulatory focus will be on compliance with remittance and securities laws. Stripe must ensure that any stablecoins it supports are reputable and regulated (so we can expect Stripe to use mostly fully reserved, regulated stablecoins like USDC or PYUSD and be cautious about stablecoins such as Tether, which are dominant but face transparency issues). Stripe may also lobby for a clear division that payment processors using stablecoins are not issuers, so they themselves are not bound by reserve requirements, except for normal protection of customer funds.

Europe: The EU has passed the MiCA (crypto asset market), a comprehensive framework covering stablecoins (what the EU calls “asset reference tokens” or “electronic currency tokens”). MiCA will require institutions that issue important stablecoins to be authorized and meet prudent requirements. Once approved, it also allows stablecoins to be used in all member states. This may standardize European stablecoin usage by 2024-2025. Stripe's Polish entity Bridge has registered for crypto activities and is therefore fully capable of operating under MiCA. In any case, Stripe can leverage Bridge’s first-mover advantage in compliance to expand European stablecoin services confidently, and may even support digital euros or work with European fintech companies that need stablecoins.

Developing markets: In Nigeria, Argentina, Türkiye, etc., stablecoins adoption rates are very high due to local currency fluctuations, but regulators face a dilemma. Some impose restrictions on cryptocurrencies, others consider their own CBDC. But even conservative central banks, such as those in the Middle East and Asia, recognize stablecoins. For example, Hong Kong and Singapore have issued guidelines for integrating regulated stablecoins into their financial centers. What may happen is a piece of rules: some jurisdictions will accept US dollar stablecoins as parallel currencies to speed up remittances, while others may strictly control the exchange points. Stripe will have to adjust the functionality to each situation (only enable stablecoin payments in legal places and do thorough KYC). It may also work with local licensed cryptocurrency companies in areas that don’t want to go directly to – effectively expanding Bridge’s model of connecting local payment providers.

Predict

If optimistic forecasts hold, the stablecoin market may be close to the size of the Fortune 500 banks in terms of circulation by the end of 2025. Even if not doubled, stablecoins are expected to compete with the circulation of major currencies ($400 billion will exceed many of the money supply in the long run). This means that stablecoins will increasingly be used not only in the cryptocurrency market, but also in the everyday business and finance sectors. Matt Hougan predicts that stablecoins may dominate the $44 trillion global B2B cross-border payment market over the next 5 years, an amazing reward. This shows that stablecoins will be more than just edges; they can reshape the way businesses settle invoices, the way funds are transferred between banks (some banks may prefer to send stablecoins rather than using proxy banks if regulations allow), and the way individuals send money abroad. If this happens, Stripe will make a huge profit: Being a facilitator of stablecoin flows in such a huge market, Stripe can almost become the next-generation Visa network.

However, competition for stablecoins must also be considered: CBDC (central bank digital currency) may be promoted as an alternative. The US digital dollar or digital euro can theoretically reduce the demand for private stablecoins. But even in this case, Stripe's platform handles CBDC well – the technology differences are small. In fact, fintech middleware such as Stripe may be relied on to distribute CBDCs. Stripe can then become a key partner for any CBDC launch (for example, helping the Fed distribute digital dollars to businesses). So whether it’s a private stablecoin, a public CBDC or (possibly) hybrid in the future, it’s guaranteed as long as Stripe stays ahead of its position.

Stripe's acquisition of cryptocurrency marks its wider entry into Web3. It may deepen partnerships with stablecoin issuers such as Circle (USDC) and Paxos (PYUSD), positioning itself as a key entry/export for stablecoins. In addition to stablecoins, Stripe can also integrate Bitcoin and Ethereum payments while maintaining attention to stable value assets. Developer tools, wallet acquisitions, security and compliance, and deeper collaboration with regulators may further strengthen their position. Ultimately, Stripe is building infrastructure to dominate crypto payments, just like it does online transactions.

5. Conclusion

Stripe AcquisitionBridge and its broader stablecoin strategy represent a watershed in the fintech space—a sign that the line between traditional finance and crypto finance is becoming blurred, and one of the most valuable private fintech companies in the world is leading this trend. This conclusion section summarizes the importance of Stripe’s entry into the stablecoin space and its implications for institutional investors and the fintech/crypto industry.

By embedding stablecoins into the business, Stripe is ready for payments in the next decade. Just as Stripe advocated mobile and online payments in the 2010s, it is now embracing crypto-native payments to catch up with the next wave. This could significantly expand Stripe's economic moat. The company's long-term revenue growth is likely to increasingly come from emerging markets and new financial services, and stablecoins provide an advantage to Stripe in these areas. Additionally, Stripe’s valuation (the latest estimate for mid-2024 is around $70 billion) could be boosted by this move – investors often reward companies that have successfully turned to high-growth areas. If Stripe performs well, it could account for a considerable percentage of the stablecoin transaction value, creating a new growth story above its core processing business. This statement could be strong in a potential IPO or next round of financing, leading investors to believe that Stripe will not be left behind by the crypto revolution, but will lead it instead.

Impact of FinTech and Cryptocurrency Markets

Stripe's stablecoin promotion may have a ripple effect on the fintech space and the cryptocurrency market:

In the fintech space, an arms race is expected: other major payment processors (such as Adyen, Checkout.com or Square/Block) may accelerate their cryptocurrency plans. For example, Adyen might consider integrating stablecoin acceptance to keep pace with merchants around the world. PayPal will definitely double up its promotion of PYUSD to avoid losing market share. This competitive trend can significantly accelerate the adoption curve of cryptocurrencies in payments in 2025-2026.

Stripe's recognition in the cryptocurrency market is incredible. This suggests that the biggest “cryptocurrency winners” may be more than just independent cryptocurrency companies, but also hybrid players in the merger with fintech. Cryptocurrency valuations (for related projects) may be boosted – in fact, stablecoin trading volumes have risen sharply after Stripe’s announcement as traders expect increased usage. It's not surprising if the market caps of leading stablecoins are now growing faster and there is more real economy trading volume supporting them. thisIn addition, the prospects of Stripe’s IPO and the cryptocurrency story may once again inspire public market investors’ interest in crypto-related stocks.

Users (enterprise and end consumers) will benefit the most: more competition and integration means better services and lower costs. If Stripe and its competitors succeed, global remittances could become as simple as sending emails, fulfilling long-standing commitments from digital currency enthusiasts.