WEB3
by BSCN
August 30, 2024
The platform offers Orchestration and Issuance APIs that allow businesses to seamlessly integrate stablecoins into their operations.
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 Fortune report.
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.
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.
— Zach (@zcabrams) August 29, 2024
Sean and I also spent time with @leomschwartz to tell our story.
Our blog is below.
And article is here --> https://t.co/lVhG6NFhVa https://t.co/nMEr5eamGq
The recent funding round includes a previously unannounced $40 million investment led by Sequoia and Ribbit, bringing the total to $58 million.
Bridge is expected to expand its services and bring stablecoin solutions to a wider audience with the $58 million in funding.
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.
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.
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.
“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, 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.
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.
Stablecoin market leaders like USDT and USDC have reached market caps of $118 billion and $34.6 billion, respectively, in recent years. Stablecoins offer several advantages over traditional fiat currencies, including lower transaction fees and faster settlement times.
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.
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.
Despite their advantages, stablecoins have faced challenges, particularly around their stability and transparency. The collapse of TerraUSD in 2022, an algorithmic stablecoin that failed to maintain its $1 peg, led to widespread concerns about the reliability of stablecoins.
Similarly, USDC temporarily lost its peg in 2023 due to concerns over its reserves, though it quickly recovered after the FDIC intervened.
Tether, the market leader, has also faced scrutiny over its accounting practices, raising questions about the transparency of its reserves.
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.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Latest News
January 14, 2025
Sony Announces the Mainnet Launch of Soneium Blockchain
January 14, 2025
Donald Trump to Expected to Issue Crypto Executive Orders on Day 1
January 13, 2025
7M OpenSea Leaked Emails Fully Publicized: Report
January 13, 2025
Azuki Announces to Launch of AnimeCoin Token in January
January 13, 2025
Solana-Based Scam Tokens Promote AI Projects After Major X Account Hacks
January 11, 2025
Weekly Article Recap: 1/06-1/10
January 10, 2025
Filipino Banks to Launch PHPX Peso Stablecoin on Hedera Network
January 10, 2025
U.S. Senate Banking Committee to Launch First Cryptocurrency Subcommittee