Web3 payment platform Bridge, co-founded by former Square and Coinbase employees Zach Abrams and Sean Yu, has successfully raised $58 million to build its stablecoin-centered payment network. The venture firms Sequoia, Ribbit, Index, and Haun Ventures are among the Silicon Valley investors backing the project.
New Global Payment Platform
Bridge aims to develop a global payment network centered around stablecoins, challenging traditional payment systems like SWIFT and credit cards. With $58 million in funding, the platform is expected to expand its services and introduce stablecoin solutions to a broader audience. Strategic partnerships have already begun, including a collaboration with Bitso to enable business-to-business cross-border payments in Latin America using stablecoins.
Orchestration and Issuance APIs
Bridge offers two core services: Orchestration and Issuance. The Orchestration service provides APIs that allow users to easily convert between different dollar formats, such as USD, EUR, USDC, PYUSD, and USDT. This ensures seamless cross-border payments and foreign currency exchanges with low fees and instant settlements. > “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. The Issuance service enables developers to convert any of these dollar formats into a customized stablecoin, allowing businesses to offer digital dollar-based services tailored to their specific needs.
Stablecoin Advantages and Challenges
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. Despite their advantages, stablecoins have faced challenges, particularly around their stability and transparency. The collapse of TerraUSD in 2022 and the temporary de-pegging of USDC in 2023 raised concerns about the reliability of stablecoins. Market leader Tether 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.
Bridge aims to integrate stablecoins into financial systems, offering companies efficient and cost-effective payment solutions. With the backing of leading venture firms, the founders hope to overcome challenges related to stability and transparency and create a reliable platform for global payments.
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