Web3 payment platform Bridge, co-founded by former Square and Coinbase employees Zach Abrams and Sean Yu, has successfully raised $58 million in funding, as reported by Fortune on August 29.
Integration of Stablecoin Transactions
Bridge has developed a platform that simplifies the integration of stablecoin transactions into existing financial systems. Utilizing two core services—Orchestration and Issuance—the platform allows users to easily convert various dollar formats and create customized stablecoins. The Orchestration service provides APIs that enable conversion between USD, EUR, USDC, PYUSD, and USDT, ensuring seamless cross-border payments and currency exchanges. > *“We built Bridge as a low-level set of APIs that would enable companies to use a stablecoin rail without thinking about it,”* said Zach Abrams.
Advantages of Stablecoins
Leading stablecoins 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. Stablecoins enable instant, low-cost transfers that can be conducted 24/7, without being subject to bank operating hours. 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.
Challenges of Stablecoins
Despite their advantages, stablecoins face challenges, particularly in terms of stability and transparency. The collapse of TerraUSD in 2022 raised concerns about the reliability of stablecoins. Similarly, USDC temporarily lost its peg in 2023 due to concerns over reserves but quickly recovered after FDIC intervention. Tether, the market leader, has also faced scrutiny over its accounting practices. However, Bridge’s founders believe 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.
Bridge aims to expand its services and bring stablecoin solutions to a wider audience with the $58 million in funding.
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