The recently confirmed acquisition of stablecoin payment platform Bridge for $1.1 billion by U.S. payment processor Stripe validates the growing importance and legitimacy of stablecoins as a use case for public blockchains—particularly for global cross-border transactions, according to Bernstein.

“Stablecoins have become systemically important, now the 18th largest holder of U.S. Treasury assets, alongside major sovereign holders,” Bernstein said in a note sent to Decrypt.

The integration of stablecoins into payment and fintech platforms like Stripe, PayPal, and others highlights their increasing relevance. Fiat-pegged token issuers often tout the tokens as a method for cheaper and faster cross-border payments, giving users broader access to USD-based savings and decentralized finance (DeFi) applications.

Bridge, the company acquired by Stripe, offers a software platform that helps businesses integrate stablecoin payments without the complexities of managing blockchain infrastructure.

"This acquisition validates the growth of stablecoins, with over $160 billion digitized on blockchains and monthly settlement volumes exceeding $1 trillion,” Bernstein added. “The deal further highlights the growing demand for blockchain technology in global payments, especially as players like Stripe expand into this space.”

Speaking with Decrypt, Illia Otychenko, Lead Analyst at CEX.IO emphasized how this acquisition aligns with Stripe’s recent moves into dollar-pegged tokens.

"Stripe’s acquisition of Bridge marks the largest in its history and is a natural extension of the platform’s recent push into stablecoins. Stripe is now positioning itself as a major player in stablecoin integration," said Otychenko.

Otychenko also highlighted Stripe's growing presence in the stablecoin market. "Just weeks ago, Stripe integrated USDC payments and Paxos’ stablecoin platform into its main interface,” he added. “This acquisition could further enhance Stripe’s support for third-party stablecoins, or perhaps lead them to issue their own stablecoin."

This acquisition follows Stripe's broader push into crypto-related offerings. Earlier this year, Stripe launched a fiat-to-crypto on-ramp integration with the Avalanche Network and partnered with Coinbase to integrate Layer 2 network Base into its payout products.

Edited by Stacy Elliott.