Bridge, a new payment platform co-founded by former Square and Coinbase leaders Zach Abrams and Sean Yu, has reportedly raised $58 million in financial backing.

The network aims to build a global stablecoin payment system that rivals traditional methods like SWIFT and credit card services, garnering investments from notable firms such as Sequoia, Ribbit, and Index.

According to a Fortune report, Bridge has previously acquired undisclosed funding, which includes a substantial recent investment of $40 million from Sequoia and Ribbit. Currently, Bridge’s clientele features major players like Coinbase and SpaceX. In a recent interview, Abrams shared insights into their strategy, stating:

“Fintech is deeply rational. If you can do something that is faster, cheaper, and more economical, you win.”

High-Profile Clients Leverage Bridge’s Solutions

The Fortune report also highlighted that prestigious clients, including Elon Musk’s SpaceX, utilize Bridge’s services to manage payments in various currencies across multiple regions and to funnel these transactions through stablecoins into their global treasury.

Furthermore, Bridge collaborates with cryptocurrency platforms, including the Stellar blockchain and the Bitcoin application Strike, to provide the necessary infrastructure for their stablecoin payment solutions.

Resilience of the Stablecoin Market Despite Challenges

As of now, the total market capitalization of stablecoins is approximately $177.24 billion, based on data from CoinMarketCap. The two primary stablecoins leading the market are Tether’s USDT, with a capitalization of $118.22 billion, and USDC at $34.6 billion.

Stablecoin Market Cap Chart

Leading stablecoin tokens ranked by market capitalization.
Source: CoinMarketCap

The stablecoin market faced a significant challenge in 2022, when the TerraUSD (UST) stablecoin lost its peg to the US dollar, resulting in a catastrophic collapse that erased billions in value.

This incident not only shook investor confidence but also attracted intense regulatory scrutiny, culminating in a lawsuit from the US Securities and Exchange Commission in February 2023.

Despite these hurdles, the stablecoin sector continues to attract interest as a preferred investment option. Notably, PayPal has introduced PayPal USD (PYUSD), which is backed 1:1 by US dollars and issued by the Paxos Trust Company, a regulated crypto custodian in the US. PayPal USD competes with other regulated dollar-backed stablecoins like USD Coin (USDC). Recently, PayPal USD surpassed $1 billion in total market capitalization.