Here’s Why Stripe Acquiring Stablecoin Platform Bridge Is a Big Deal

Fintech and Web3 startups are here to stay and financial infrastructure Fintechs such as Stripe are making big waves by strategically acquiring stablecoin platform Bridge. Why would a company like Stripe that’s valued at around $70 Billion be interested in a relatively small business venture like Bridge? Although it is a major $1.1 Billion acquisition, for Stripe, it is a walk in the park or not that big of a deal. In terms of the capital provided for the deal, Stripe got great value at what may be considered a steep discount in the foreseeable future.

Stripe has Its Stablecoin Plans In Order

Yes, sure the investors of Bridge have made a large profit considering Bridge had been valued at a price tag of just $200 million. Still though, Stripe is smart. Very smart. That’s because their Fintech experts realize the enormous potential of Stablecoins. Gone are the days when we simply think of stablecoin transactions merely for carrying out large-volume crypto trades. You can, for instance, use stablecoins for making remittance payments or finalizing cross-border transactions in a frictionless manner.

Sure, we have regular fiat currencies that work just as well for now. But the future will be increasingly digital as most Fintech gurus predict. And after the COVID outbreak, the trend towards digital transformation of most business activities has really picked up pace. Given these industry trends, it is quite like that more Fintech giants like Stripe will come forward with their own grand plans like Revolut just revealed a few weeks back I think. Although Revolut is dealing with a lot of issues right now, with many customers reporting a surge in fraud via the platform, the Fintech Unicorn will surely capitalize on the stablecoin trend.

Stablecoin Adoption to Increase as Stripe Makes Important Deals

In addition to Stripe and Revolut, many other companies like PayPal have introduced their own stablecoins. Although these coins are not as popular as Tether’s USDT or Circle’s USDC, they are a step in the right direction. In areas where regular dollars or Euros may not be as accessible, it just might be easier to acquire and transact with stablecoins. But for this nascent ecosystem to grow in a sustainable manner, regulators will have to introduce innovation-friendly regulatory frameworks that will not stifle advancements in the most vital areas of finance.

With Stripe’s latest acquisition of a stablecoin focused startup, we can be sure to hear about other companies announcing similar initiatives. Although there is definitely a lot more going on in the crypto space apart from stablecoins, this is an area that will most likely form a major part of the future of finance. Now, many people think decentralized finance or DeFi will play a huge role in modern financial services. But many are of the view that there could be more of a mixed or hybrid financial system.