Bridge, the Web3 payment platform co-founded by former Square and Coinbase employees Zach Abrams and Sean Yu, has secured $58 million in funding. The aim is to build a global payment network centered around stablecoins.
Funding and Objectives
According to an Aug. 29 Fortune report, Bridge has raised $58 million in funding. Among the investors are notable Silicon Valley venture firms such as Sequoia, Ribbit, Index, and Haun Ventures. The company aims to build a global payment network around stablecoins, challenging traditional payment systems like SWIFT and credit cards. The recent funding round included a previously unannounced $40 million investment led by Sequoia and Ribbit.
Platform Capabilities
Bridge offers two core services: Orchestration and Issuance. The Orchestration service provides APIs to convert between various dollar formats such as USD, EUR, USDC, PYUSD, and USDT. This ensures seamless cross-border payments and currency exchanges with low fees and instant settlements. Abrams noted, “We built Bridge as a low-level set of APIs that would enable companies to use a stablecoin rail without thinking about it.” The Issuance service allows developers to convert any of these dollar formats into a customized stablecoin. This flexibility enables businesses to offer digital dollar-based services tailored to their specific needs.
Stablecoin Advantages and Challenges
Stablecoin market leaders like USDT and USDC have reached market caps of $118 billion and $34.6 billion, respectively. Stablecoins offer several advantages over traditional fiat currencies, including lower transaction fees and faster settlement times. However, stablecoins have faced challenges, particularly regarding their stability and transparency. The collapse of TerraUSD in 2022 and the temporary loss of USDC’s peg in 2023 raised concerns about the reliability of stablecoins. Nevertheless, the Bridge team believes their fintech expertise gives them a unique edge in navigating these challenges.
Supported by prominent venture firms, Bridge aims to develop a reliable and accessible stablecoin platform for a broad range of businesses. The $58 million funding will enable the company to expand its services and bring stablecoin solutions to a wider audience.
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