Stablecoin Network Bridge Aims to Rival SWIFT with New Funding
Bridge, a newly established fintech startup, has raised $58 million in funding to enhance the role of stablecoins in global payments. The company, co-founded by former Square and Coinbase executives Zach Abrams and Sean Yu, aims to develop a comprehensive stablecoin payment network that could rival traditional systems such as SWIFT and credit cards.
Funding and Backing
The $58 million in funding includes a recent $40 million investment from prominent venture firms Sequoia and Ribbit. Additionally, Index Ventures and blockchain-focused Haun Ventures have contributed. This robust financial backing underscores the confidence investors have in Bridge’s potential to transform the payment landscape.
In a statement to Fortune, Abrams highlighted the company’s focus: “Fintech is deeply rational. If you can do something that is faster, cheaper, and more economical, you win.” This philosophy drives Bridge’s mission to build a global payment network centred around stablecoins.
Stablecoins and Market Growth
Stablecoins, digital currencies pegged to traditional assets like the US dollar, have seen substantial growth. Tether and USD Coin (USDC) lead the market, with Tether having a market cap of approximately $118 billion and USDC around $34 billion. Despite facing challenges, including the collapse of TerraUSD and the recent scrutiny of USDC, stablecoins continue to gain traction.
The stablecoin sector’s growth is attributed to its low transaction costs and instant settlement capabilities. Companies such as PayPal and Stripe are already integrating stablecoins into their financial services, highlighting their increasing relevance.
Bridge’s Vision and Applications
Bridge’s technology aims to facilitate seamless conversions between different stablecoins and traditional currencies. The company offers APIs for issuing stablecoins and orchestrating payments, with a particular emphasis on global B2B transactions. Head of Revenue Marco Mahrus articulated this vision: “We need a truly global framework that can ride on top of financial systems.”
The company has already secured high-profile clients, including SpaceX, which uses Bridge’s services for managing payments across various currencies and jurisdictions. Additionally, Bridge collaborates with crypto firms like Stellar and Bitcoin app Strike, providing essential infrastructure for their stablecoin functionalities.
Compliance and Future Plans
Compliance remains a key focus for Bridge. The company holds licenses in 48 US states and is pursuing additional certifications in New York and Europe. Abrams believes that regulatory developments will enhance the appeal of stablecoins to traditional businesses, stating, “My interest comes from moving money. It’s less blockchain-specific.”
Conclusion
Bridge’s substantial funding and ambitious goals reflect a significant step towards mainstreaming stablecoin use in global payments. By addressing current challenges and offering innovative solutions, Bridge aims to become a pivotal player in the evolving financial landscape, potentially reshaping how cross-border transactions are conducted.
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