Stablecoin

America

2024

USDC

Bridge, a Web3 payment platform co-founded by former Square and Coinbase employees Zach Abrams and Sean Yu, successfully raised $58 million in funding, according to an Aug. 29&nbsp;<a style="text-decoration:none" href="https://fortune.com/crypto/2024/08/29/bridge-stablecoins-sequoia-ribbit-index-haun-58-million/">Fortune report</a>.
The firm aims to build a global payment network centered around stablecoins, challenging traditional payment systems like SWIFT and credit cards. Sequoia, Ribbit, Index, and the blockchain-focused Haun Ventures, are just a few of the Silicon Valley venture firms backing Bridge.
<div>
 <blockquote class="twitter-tweet">
 We've been building Bridge for 2.5 years. Very excited to finally share more about what we do and why we're doing it. Sean and I also spent time with <a href="https://twitter.com/leomschwartz?ref_src=twsrc%5Etfw">@leomschwartz</a> to tell our story. Our blog is below. And article is here --&gt; <a href="https://t.co/lVhG6NFhVa">https://t.co/lVhG6NFhVa</a> <a href="https://t.co/nMEr5eamGq">https://t.co/nMEr5eamGq</a>— Zach (@zcabrams) <a href="https://twitter.com/zcabrams/status/1829194284207386921?ref_src=twsrc%5Etfw">August 29, 2024</a>
 </blockquote> 
</div>
The recent funding round includes a previously unannounced $40 million investment led by Sequoia and Ribbit, bringing the total to $58 million.&nbsp;
&nbsp;
Bridge is expected to expand its services and bring stablecoin solutions to a wider audience with the $58 million in funding.
&nbsp;
The firm has already begun forging strategic partnerships, including a collaboration with Bitso to enable business-to-business cross-border payments in Latin America using stablecoins.
<h2 dir="ltr" id="span-span-bridging-the-gap-orchestration-and-issuance-apis-span-span">Bridging the Gap: Orchestration and Issuance APIs</h2>
Bridge’s platform is designed to simplify the integration of stablecoin transactions into existing financial systems. The company offers two core services: Orchestration and Issuance.&nbsp;
&nbsp;
The Orchestration service provides APIs that allow users to easily convert between different dollar formats, such as USD, EUR, USDC, PYUSD, and USDT. This service ensures seamless cross-border payments and foreign currency exchanges with low fees and instant settlements.
<blockquote>
 “We built Bridge as a low-level set of APIs that would enable companies to use a stablecoin rail without thinking about it,” Abrams said.
</blockquote>
The Issuance service, on the other hand, enables developers to convert any of these dollar formats into a customized stablecoin. This flexibility reportedly allows businesses to offer digital dollar-based services tailored to their specific needs.&nbsp;
&nbsp;
Through these services, Bridge aims to empower companies to seamlessly integrate stablecoins into their operations, resulting in a more efficient and cost-effective payment system.
<h2 dir="ltr" id="span-span-the-stablecoin-advantage-span-span">The Stablecoin Advantage</h2>
Stablecoin market leaders like USDT and USDC have reached market caps of&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/tether/">$118 billion</a> and&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/usd-coin/">$34.6 billion</a>, respectively, in recent years. Stablecoins offer several advantages over traditional fiat currencies, including lower transaction fees and faster settlement times.&nbsp;
&nbsp;
Unlike fiat transactions, which are often subject to bank operating hours and high fees for cross-border payments, stablecoins enable instant, low-cost transfers that can be conducted 24/7.
&nbsp;
Bridge aims for a future where stablecoins operate as the global payment rail, similar to how Stripe facilitates online payments or Plaid connects apps to bank accounts.&nbsp;
<h2 dir="ltr" id="span-span-challenges-of-stablecoins-span-span">Challenges of Stablecoins</h2>
Despite their advantages, stablecoins have faced challenges, particularly around their stability and transparency. The&nbsp;<a style="text-decoration:none" href="https://www.cnbc.com/2022/05/13/cryptocurrency-luna-crashes-to-0-as-ust-falls-from-peg-bitcoin-rises.html">collapse of TerraUSD</a> in 2022, an algorithmic stablecoin that failed to maintain its $1 peg, led to widespread concerns about the reliability of stablecoins.&nbsp;
&nbsp;
Similarly, USDC temporarily&nbsp;<a style="text-decoration:none" href="https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dollar-peg-after-firm-reveals-it-has-3point3-billion-in-svb-exposure.html">lost its peg</a> in 2023 due to concerns over its reserves, though it quickly recovered after the FDIC intervened.
&nbsp;
Tether, the market leader, has also&nbsp;<a style="text-decoration:none" href="https://www.cnbc.com/2023/10/13/tether-promotes-cto-to-ceo-taking-over-from-mysterious-crypto-boss.html">faced scrutiny</a> over its accounting practices, raising questions about the transparency of its reserves.&nbsp;
&nbsp;
However, Bridge’s founders believe that their fintech background gives them a unique edge in navigating these challenges. The Bridge team aims to build a stablecoin platform that is reliable and accessible to a broad range of businesses, including crypto startups and traditional fiat companies.

Web3 Payment Platform Bridge Raises $58M to Transform Global Payments with Stablecoins

Table of Contents

BSCN

Other articles published on Sep 11, 2024

Senator Warren: Winklevoss Twins Don’t Want “Fair Regulation”, John Deaton Counters

FTX Bankruptcy Plan Faces Scrutiny as SEC Questions Stablecoin Payments

Kamala Harris and Donald Trump Skip Crypto Discussion in First Debate

Changpeng Zhao Permanently Barred from Binance Management But Retains Power: Binance CEO

Crypto.com Announces Strategic Partnership with Standard Chartered Bank to Expand Global Retail S...

Huma Finance Secures $38 Million to Expand Payment Financing Platform

Join our free newsletter for daily crypto updates!