FAQ for Bridge end-users

What is Form 1099-DA?

The new Form 1099-DA (Digital Asset Proceeds From Broker Transactions) is the IRS's way of getting a clearer picture of your activity with cryptocurrencies and other digital assets. It's an official tax form (an information return) that is sent to you and to the IRS by the platforms or companies that help you buy, sell, or trade digital assets including stablecoins.

Why am I receiving this form?

If you received Form 1099-DA from Bridge, it is because you have used Bridge’ wallet services in 2025. The IRS considers Bridge a "digital asset broker" and requires us to report transactions like disposing open-loop stablecoins from your wallet for another cryptocurrency, fiat currency, goods or services. 

Does it mean I owe more taxes to the US government?

Receiving this form does not automatically mean you owe more taxes to the IRS. Form 1099-DA is purely informational and is intended to assist you in calculating the capital gains or losses that the IRS requires taxpayers to report on their US federal income tax returns. Stablecoins supported by the Bridge wallet (USDC, PYUSD, EURC) are typically expected to result in minimal or no gains or losses on your end – this is because Bridge has direct redemption rights with those stablecoin issuers.

Why is the form not showing my transactions in USDB?

Closed-loop tokens are excluded from Form 1099-DA because closed-loop tokens are inherently different in nature from other open-loop tokens. 

Will I receive this form again next year?

Bridge cannot confirm at this time. The IRS may modify its tax information reporting requirements. Many digital asset companies that are considered brokers are currently voicing concerns with the US Treasury Department about the compliance burden of issuing Form 1099-DA for stablecoin transactions, with minimal gains or losses being reported on the form. It is possible that the regulations will change to exclude certain stablecoin transactions altogether, effective 2026.

What if I didn’t receive a form?

If you were a Bridge customer in 2025 and did not receive Form 1099-DA, it is because Bridge did not qualify as a 'digital asset broker' under IRS rules for the specific services provided to you. Consequently, Bridge has no reporting obligation for your account. Please independently assess your own tax requirements, including whether you must issue Form 1099-DA to your own end users. If you believe you should have received a form, please contact us.