Bridge, a Stablecoin Payment Network Founded by Ex-Square and Coinbase Leaders, Secures $58 Million in Funding

Bridge, a Stablecoin Payment Network Founded by Ex-Square and Coinbase Leaders, Secures $58 Million in Funding

Bridge, a global stablecoin payment network co-founded by former Square and Coinbase executives Zach Abrams and Sean Yu, has successfully raised $58 million in its latest funding round. The round attracted major investments from prominent firms like Sequoia, Ribbit, and Index Ventures, highlighting the growing interest in the transformative potential of stablecoins within the global financial landscape.

Of the total amount, $40 million was contributed by Sequoia and Ribbit, underscoring their confidence in Bridge’s mission to revolutionize cross-border payments. Bridge’s platform offers a faster, more cost-effective alternative to traditional financial networks by facilitating transactions through stablecoins, making it an attractive option for high-profile clients, including SpaceX and Coinbase.

SpaceX, in particular, has integrated Bridge’s services into its global treasury operations, using the platform to convert payments in multiple currencies into stablecoins. This allows the company to streamline its financial processes across borders.

“Fintech is deeply rational. If you can do something that is faster, cheaper, and more economical, you win,” said Zach Abrams in an interview with Fortune. This belief drives Bridge’s ambition to reshape the payments industry.

Bridge’s success is further bolstered by strategic partnerships with cryptocurrency platforms such as the Stellar blockchain and the Bitcoin app Strike. These collaborations provide the necessary infrastructure for seamless stablecoin transactions, strengthening Bridge’s foothold in the fintech ecosystem.

Stablecoin Market Reaches New Heights Amid Expansion

The stablecoin market continues to grow, achieving a record capitalization of $168 billion after 11 months of consistent expansion. This resurgence follows a previous peak of $167 billion in March 2022, which was followed by a sharp decline to $135 billion by the end of that year.

Tether (USDT), the leading stablecoin, has been instrumental in this growth. Starting 2024 with a market cap of $91.69 billion, USDT has seen steady monthly increases, reaching over $117 billion by August. Circle’s USD Coin (USDC) has also shown gains, with its market cap rising to over $34 billion, though this remains below its all-time high of $55.8 billion in June 2022.

Despite this growth in market capitalization, stablecoin trading volumes have seen a decline. A report by CCData noted an 8.35% drop in trading volumes to $795 billion in July, largely due to decreased activity on centralized exchanges and ongoing regulatory concerns in Europe. This downward trend has continued into August, with trading volumes hovering just above $46 billion.

The stablecoin market, while expanding, remains largely unregulated. In response to this, U.S. Senators Cynthia Lummis and Kirsten Gillibrand recently proposed a bill aimed at establishing a regulatory framework for stablecoins. The legislation would impose reserve and operational requirements on stablecoin issuers, including the creation of dedicated subsidiaries for issuing these digital assets.

Bridge’s significant funding round and the broader growth of the stablecoin market illustrate the increasing influence of digital currencies in global finance, as well as the ongoing efforts to establish regulatory oversight in this rapidly evolving sector.

Powered by Crypto Expert BD

Follow us on Twitter: https://x.com/CryptoExpert_BD

Join our Telegram channel: https://t.me/CryptoExpert_BD

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *