Stripe’s Acquisition of Bridge Validates the Usage of Stablecoins: Bernstein
Stripe’s acquisition of stablecoin platform Bridge for $1.1 billion has been deemed as a validation of the usage of stablecoins on public blockchains, according to a research report by broker Bernstein. The report highlights that stablecoins, particularly U.S. dollar-denominated ones, have emerged as the leading use case for blockchains, especially for cross-border payments. Bernstein notes that stablecoins are now the cheapest method for cross-border payments, with a cost of only 1-2 basis points. The acquisition of Bridge by Stripe is also recognized as the largest crypto acquisition made by a major payments company to date. The report emphasizes the role of companies like Bridge in developing API software that allows businesses to seamlessly integrate stablecoin payments into their regular payment processes. Investment bank Architect Partners also acknowledges the growing recognition of stablecoin-based payments and their benefits, with non-crypto firms increasingly adopting them. This acquisition is seen as a disruptive challenge to the traditional banking system, as it enables payments at scale without the involvement of a bank.