Sequoia Capital and several other venture capital (VC) firms are reportedly set to generate hundreds of millions of dollars in returns from Stripe’s recent acquisition of the stablecoin infrastructure platform Bridge.
According to Bloomberg, Sequoia holds a 16% stake in Bridge after an initial investment of $19 million in the startup’s Series A round less than a year ago. The VC’s stake is now valued at over $100 million thanks to the platform’s acquisition deal, which was valued at $1.1 billion.
The significant value of this acquisition has renewed optimism among venture capitalists looking to invest in crypto-related projects.
The report indicated that Sequoia is not the only venture capital firm poised to benefit from the Stripe acquisition. Ribbit Capital, which owns roughly 10% of Bridge, is expected to see similar returns, with its stake valued near $100 million. Other investors benefiting from the deal include Bedrock (6%), Index (6%), and Haun Ventures (4%).
Founded three years ago by ex-Coinbase executives Zach Abrams and Sean Yu in 2022, Bridge specializes in providing infrastructure stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar, which maintains stability and makes them ideal for daily transactions. It was initially created to compete with credit card companies and the global payments network SWIFT; the platform developed from providing cross-border payment solutions to supporting government aid disbursement across Latin America.
Stripe’s acquisition reflects its growing interest in cryptocurrencies, particularly stablecoin applications. Recently, on October 15, the San Francisco-based payment processing company partnered with Paxos to integrate Circle’s USDC stablecoin into its “Pay with Crypto” feature, enabling merchants across 70 countries to accept payments in USDC.
The company has also expanded its digital asset services to European customers. As of July 16, 2024, consumers in the European Union can purchase Bitcoin, Ethereum, and other cryptocurrencies using Stripe-issued credit or debit cards.
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