Bridge raises $58 million from reputable investors to create a payment network for stablecoins.
Bridge, a startup founded by former Square and Coinbase employees Sean Yu and Zack Abrams, has secured $58 million in funding from prestigious investors. The executives aim to make stablecoin more widely used by creating a global payment network for it. The technology is geared towards making global money transfers faster and cheaper.
Bridge’s Investors Revealed
According to a Fortune report, Bridge has secured its funding from reputable venture capital firms. This includes Sequoia Capital which has a long history of supporting innovative startups and has a strong presence in the fintech and cryptocurrency space. The firm’s previous investments include Apple, Google, Facebook, and Airbnb.
Ribbit Capital, which specializes in fintech investments, also participated in the funding round. The capital firm has invested in prominent companies like Robinhood, Coinbase, and Credit Karma. Ribbit and Sequoia raised $40 million, over 68% of the total funds realized. Index and the blockchain-focused Haun Ventures were also investors in the funding round.
While Bridge boasts of reputable investors, it also has high-profile customers too. The startup has already established partnerships with clients like SpaceX and Coinbase.
Bridge’s joining the market as a stablecoin payment system shows a growing interest in stablecoins as a viable investment option. However, it needs to build relationships with financial institutions and get licenses to operate in different countries. They also need to overcome trust issues with non-crypto companies.
Stablecoin Market Keeps Growing
Despite a major setback in 2022, when TerraUSD (UST) lost its peg to the U.S. dollar and collapsed, the stablecoin market remains an attractive investment tool. The incident led to a loss of investor confidence and intense regulatory scrutiny.
The stablecoin market currently boasts a capitalization of $177.24 billion, with Tether (USDT) and USD Coin (USDC) leading the pack. According to CoinMarketCap data, USDT and USDC have market capitalizations of $118.22 billion and $34.6 billion, respectively.
Regulated stablecoins are gaining traction. PayPal introduced PayPal USD (PYUSD), a dollar-backed stablecoin issued by Paxos Trust Company. PYUSD has surpassed $1 billion in market capitalization, competing with other regulated stablecoins like USDC.