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/" rel="noopener noreferrer nofollow">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.
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 <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" rel="noopener noreferrer nofollow">@leomschwartz</a> to tell our story. Our blog is below. And article is here --&gt; <a href="https://t.co/lVhG6NFhVa" rel="noopener noreferrer nofollow">https://t.co/lVhG6NFhVa</a> <a href="https://t.co/nMEr5eamGq" rel="noopener noreferrer nofollow">https://t.co/nMEr5eamGq</a>— Zach (@zcabrams) <a href="https://twitter.com/zcabrams/status/1829194284207386921?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 29, 2024</a>
 </blockquote>
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The recent funding round includes a previously unannounced $40 million investment led by Sequoia and Ribbit, bringing the total to $58 million.&nbsp;
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Bridge is expected to expand its services and bring stablecoin solutions to a wider audience with the $58 million in funding.
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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;
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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.
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 “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.
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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;
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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/" rel="noopener noreferrer nofollow">$118 billion</a> and&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/usd-coin/" rel="noopener noreferrer nofollow">$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;
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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.
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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" rel="noopener noreferrer nofollow">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;
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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" rel="noopener noreferrer nofollow">lost its peg</a> in 2023 due to concerns over its reserves, though it quickly recovered after the FDIC intervened.
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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" rel="noopener noreferrer nofollow">faced scrutiny</a> over its accounting practices, raising questions about the transparency of its reserves.&nbsp;
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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

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