How New Stablecoin Startup Bridge Got Acquired by Stripe for $1.1 Billion - Ep. 764

42 snips

Jan 14, 2025

Zach Abrams, co-founder of stablecoin startup Bridge, shares his remarkable journey of securing a $1.1 billion acquisition by Stripe. He discusses the challenges of navigating the tumultuous crypto landscape and highlights how stablecoins can revolutionize traditional payment systems. With insights from his experience at Coinbase, Zach reveals the importance of compliance and fraud prevention in the industry. He also envisions a future with diverse stablecoins and suggests that the existing fiat infrastructure may pose the biggest competition for innovators like Bridge.

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INSIGHT

Stablecoin Advantages

Stablecoins offer advantages over traditional cross-border payments like speed and lower costs.
They combine the best aspects of netting and SWIFT, using local payment methods and end-to-end money movement.

INSIGHT

Financial System Problems

Traditional financial systems are fragmented and incompatible across countries, making international transactions difficult and costly.
Stablecoins solve this by enabling easier access to different financial systems and cheaper, faster money movement.

ANECDOTE

Bridge's Early Challenges

Bridge faced significant challenges during its first year, including market collapses like Terra Luna and FTX, and banking partner issues.
Despite these setbacks, the company persevered due to its belief in the long-term financial rationality of stablecoins.

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In October, the crypto industry saw a jaw-dropping acquisition: Bridge, a stablecoin-focused company, was bought by Web2 payments giant Stripe for $1.1 billion.

Now, three months later, Bridge co-founder Zach Abrams opens up about the wild journey that led to this moment, from navigating collapses like Terra’s UST and USDC’s depegging, to securing compliance and fraud prevention as core priorities.

Zach also delves into his vision for the future of stablecoins, whether the U.S. dollar will continue to dominate, and why global financial infrastructure needs an upgrade.

Plus, he recounts how timing and resilience helped Bridge stand out amidst massive industry challenges.

Show highlights:

01:49The problems of the payments system and how stablecoins could solve them
13:35 What Bridge is, how it works and what types of consumers it serves
19:33 What significant inconveniences Bridge found throughout its journey
25:56 How Zach’s background in Coinbase influenced the launch of Bridge
30:20 Whether there will be multiple stablecoins or just a couple of winners
33:49 How Bridge worked with their customers to improve its product
39:35 The story of how Bridge was acquired by Stripe for $1.1 billion
46:37 Whether its dependence on banks is a problem for Bridge
53:02 How Bridge deals with fraud and compliance
59:50 What Zach thinks about the competition in the stablecoin landscape
1:04:37 Why Zach believes that the fiat infrastructure landscape is still Bridge’s main competitor
1:10:08 Whether the U.S. dollar will remain the overwhelmingly predominant currency in stablecoins

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Guest:

Zach Abrams, Co-founder of Bridge