The Rise of Stablecoins and the Layout of Payment Giants

Stablecoins are rapidly developing, with their global trading settlement volume surpassing that of Visa by more than double. As one of the major payment companies in the United States, Stripe made headlines this year by actively experimenting with crypto payments, acquiring the stablecoin API company Bridge.xyz, which was founded only 2 years ago, for $1.1 billion, creating the largest acquisition case in the crypto industry.

The Rapid Growth of Stablecoins

A recent cryptocurrency report clearly points out that stablecoins have become one of the most significant "killer applications" in the Web3 space. Thanks to the proliferation of smartphones and the application of blockchain technology, stablecoins may become the greatest financial empowerment movement in history.

Stablecoins simplify the process of value transfer, with a quarterly transaction volume that is more than double that of a well-known payment company at $3.9 trillion. In terms of daily active addresses, stablecoins account for nearly one-third of daily cryptocurrency usage, second only to decentralized finance (DeFi).

According to a report from a certain payment company, the total supply of stablecoins is approximately $170 billion, with annual settlement assets valued in the trillions of dollars. There are about 20 million addresses conducting stablecoin transactions on-chain each month, with over 120 million addresses holding a non-zero stablecoin balance. This indicates that stablecoins are operating in parallel with traditional financial infrastructure.

Some striking stablecoin statistics:

• Stablecoins are now the sixth largest buyer of U.S. Treasuries.
• 30% of cross-border remittances are conducted through stablecoins.
• Many major payment companies have stablecoin projects.
• Some international financial organizations and sovereign countries are exploring the use of stablecoin for payments.
• The application of stablecoins in non-cryptocurrency fields is becoming increasingly prominent, such as remittances, cross-border payments, and salary disbursement.

Bridge Company Introduction

Bridge was founded by Sean Yu and Zach Abrams, providing software tools that help companies accept stablecoin payments. The company's Orchestration API integrates stablecoin transactions into existing business operations of traditional companies, handling complex issues related to compliance, regulation, and technology.

The Issuance API of Bridge can assist users in issuing their own stablecoins and provide US Treasury investment options to enhance capital utilization. By combining its self-developed cross-chain trading, fiat/crypto deposit and withdrawal acceptance, and virtual bank account services, Bridge can help traditional users use stablecoins for payments more easily.

Bridge has attracted numerous clients, including a well-known aerospace company. The company has also established partnerships with several blockchain networks and cryptocurrency payment applications. According to statistics, the annual payment volume processed by Bridge has exceeded $5 billion.

Cooperation between Stripe and Bridge

Stripe's acquisition of Bridge essentially continues the trend of the rise of stablecoins, and the integration of the two will further promote the implementation of Stripe's cryptocurrency payment strategy, making it easier to handle stablecoin transactions.

Bridge indicates that partnering with Stripe will accelerate the adoption and utility of tokenized dollars, making it easier for global users to transfer, store, and spend currency. Since the launch of the API, the adoption and use of stablecoins have been rapidly accelerating. Bridge has collaborated with multiple cross-border payment companies and government agencies to provide dollar account services for global users.

Both parties believe that the increasingly globalized world needs a better currency system—one that can flow across borders, is freely usable by anyone, and allows for nearly free remittances. They also recognize that significant changes in financial services require long-term accumulation, continuous improvement of products and platforms, and the establishment of trust with customers, regulators, and partners.

Stripe's Crypto Layout

Stripe recently announced the reintroduction of cryptocurrency payment gateways for U.S. merchants, allowing them to accept stablecoin payments through multiple blockchain networks, with the option to receive USD. This feature will be applicable to various payment scenarios.

Although Stripe first offered Bitcoin payments in 2014, it later suspended the service due to technical limitations. Since the beginning of this year, Stripe has integrated crypto services multiple times, including allowing EU users to purchase cryptocurrencies and collaborating with a well-known cryptocurrency exchange.

Stripe's businesses essentially involve the conversion between fiat currency and cryptocurrency, as well as cross-chain settlement of cryptocurrencies. The acquisition of Bridge will quickly enhance these functional needs, better serve existing customers, and expand into new markets.

Benchmarking Against Other Payment Giants

A well-known payment company issued a stablecoin on Ethereum for the first time last year and has expanded to other blockchain networks this year. The company is actively promoting its stablecoin developer ecosystem. Data shows that its stablecoin has reached a 64% share on a certain blockchain.

The company has clarified three stages for stablecoin payments to achieve widespread adoption: concept introduction, integration to realize payment utility, and ubiquitous stablecoin payments. It is currently in the transition from the second stage to the third stage.

Another payment giant focuses on Bitcoin, holding a large amount of Bitcoin and having multiple layouts in the crypto field.

As mainstream payment companies enter the market, competition in the stablecoin payment sector is becoming increasingly fierce. In the future, we may see more large-scale mergers and acquisitions, driving further development of the industry.