The Daily: Stripe acquires stablecoin platform Bridge for $1.1 billion, crypto markets 'scream risk-on' and more

I hope you had a good weekend, folks. In today's Daily, Stripe's $1.1 billion acquisition of stablecoin platform Bridge is confirmed, Bernstein says Bitcoin ETF inflows, crypto equity markets and retail trading sentiment are "screaming risk-on," Japan's DPP leader pledges a 20% tax cap on crypto gains and more.

Meanwhile, perpetually rising bitcoin prices would lead to societal impoverishment , ECB economists claim, as the BIS highlights risks in TradFi's move toward tokenization.

Let's get started.

Stripe acquires stablecoin platform Bridge for $1.1 billion

Payments giant Stripe has acquired stablecoin platform Bridge for $1.1 billion , according to TechCrunch founder and well-known venture capitalist Michael Arrington, expanding its integration with the space.

• The deal marks Stripe's largest acquisition and is also a record for the crypto industry despite Bridge's relatively under-the-radar status.
• It follows last week's reports that the firms were in advanced acquisition talks, with Bridge later confirming it was joining forces with Stripe in a Monday post on X.
• Notably, Bridge appears to own the @stablecoin handle on the social media platform.
• Bridge, founded by entrepreneurs Sean Yu and Zach Abrams, provides software tools that help companies accept payments in stablecoins.
• The founders previously sold a Venmo competitor called Evenly to Jack Dorsey's Block in 2013, and Abrams is also a former Coinbase executive.
• Bridge had previously raised $58 million from investors, including a $40 million Series A round that valued it at $200 million, making this deal a significant jump in its price tag.
• An early pioneer of bitcoin payment support in 2014, Stripe recently reinstated crypto payments for U.S. businesses via USDC on Ethereum, Solana and Polygon.
• In June, Stripe also inked a partnership with Coinbase to incorporate the crypto exchange's Layer 2 network Base into its crypto payout products and enable users to use Stripe's fiat-to-crypto onramp to buy digital assets with credit cards or Apple Pay inside the non-custodial Coinbase Wallet.

Crypto markets are 'screaming risk-on'

Bitcoin ETF inflows, crypto equity markets and retail trading sentiment are "screaming" a risk-on environment , according to analysts at research and brokerage firm Bernstein.

• Bitcoin, alongside other risk assets, is interpreting rising odds for the overtly pro-crypto Donald Trump to win the U.S. presidential election as bullish, analysts led by Gautam Chhugani wrote.
• Coupled with clearer crypto policy statements from rival Kamala Harris, the market is seemingly less worried about downside risk and finding it attractive to bid, Chhugani added.
• U.S. spot Bitcoin ETFs saw $2.1 billion in inflows last week, the largest since March, while crypto-related equities continue to outperform in October and retail sentiment is boosted by the latest surge in AI bot-connected memecoin activity, the analysts said.

Japan's DPP leader pledges 20% tax cap on crypto gains

Yuichiro Tamaki, the leader of Japan's Democratic Party for the People (DPP), has proposed a plan to reduce tax rates on crypto gains from 55% to 20% ahead of the upcoming general election.

• The DPP's policy pitch also includes tax exemptions for cryptocurrency-to-cryptocurrency exchanges, raising leverage limits for retail investors from 2x to 10x and introducing crypto ETFs.
• While the DPP is a smaller opposition party, surveys suggest it could increase its parliamentary seats following the election, potentially gaining more influence over crypto tax policy reform.
• The proposal stands in stark contrast to Italy's recently announced plans to increase capital gains tax on bitcoin and other cryptocurrencies from 26% to 42%.

Data breach at fiat-to-crypto payment gateway Transak affects over 57,000 users

Transak, a Miami-based fiat-to-crypto payment gateway, has disclosed a data breach affecting 1.14% of its 5 million users , potentially impacting more than 57,000 people.

• Transak is used by major blockchain platforms, including MetaMask, Trust Wallet, Coinbase and Ledger.
• The Stormous ransomware gang claimed responsibility for the breach, stealing 300GB of sensitive data, including IDs and addresses, from a third-party KYC vendor.
• Transak said that no financial data or assets were compromised but advised affected users to look out for suspicious activity and offered identity monitoring services.
• The same group also claimed responsibility for an exploit of the decentralized identity system Fractal ID in July, raising concerns about recurring vulnerabilities in web3-connected identity solutions.

MetaMask and digital identity firm Space ID aim to simplify crypto

MetaMask and Space ID have collaborated on an integration designed to simplify crypto transactions , allowing users to replace complex wallet addresses with customizable handles.

• Users can register a Space ID domain name and map it to their EVM-compatible public addresses to create a single and secure handle when making transactions via MetaMask.
• "This means that, rather than a 42-character muddle of letters and numbers, where one slip means a total loss of funds, Space ID users need only enter a simple username to send crypto," the firms said.

In the next 24 hours

• Bank of England Governor Andrew Bailey will speak at 9:25 a.m. ET on Tuesday. U.S. FOMC member Patrick Harker follows at 10 a.m. ECB President Christine Lagarde is due to speak at 10 a.m. and 3:15 p.m.
• Blockchain Life gets underway in Dubai as Cosmoverse 2024 continues and the AIM Summit concludes.

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