Stripe Doubles Down on Crypto With Acquisition of Wallet Startup Privy

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Global payments powerhouse Stripe has acquired crypto wallet infrastructure provider Privy, marking another bold step into the digital asset space. The announcement was made Wednesday via a social media post, although financial details of the acquisition remain undisclosed.

This move follows closely behind Stripe’s $1.1 billion acquisition of stablecoin platform Bridge, signaling the company’s increasing focus on blockchain-based payment technologies. Just three months after that deal, Stripe introduced a money management feature using U.S. dollar-backed stablecoins, further aligning its strategy with the crypto economy.

Stripe Taps Privy’s Wallet Technology to Power Seamless Crypto Access

Privy offers a developer-friendly wallet stack that simplifies onboarding to crypto by removing barriers like seed phrases and complex gas fee structures. The platform supports embedded wallets within apps, enabling a smoother user experience across multiple blockchain ecosystems.

Privy claims over 75 million accounts, and its technology has been integrated by notable crypto platforms including Hyperliquid, Farcaster, OpenSea, and Blackbird.

“Privy will continue to operate independently, but with Stripe’s backing, we’ll innovate faster and deliver even more value to our users,” the company announced via X (formerly Twitter).

Traditional Finance Turns to Stablecoins — and Stripe Wants In

Stripe’s recent crypto moves reflect a broader trend across traditional finance, where banks and fintechs are exploring U.S. dollar-pegged stablecoins as tools for faster, borderless transactions. Today, the stablecoin market is largely led by Tether (USDT) and Circle (USDC), but demand for new infrastructure solutions is rising rapidly.

Stripe, valued in the tens of billions, processed over $1 trillion in payments in 2023, making it one of the most influential players in global fintech. By integrating crypto-native tools like Privy, it’s aiming to bridge the gap between traditional finance and decentralized applications.

Backed by Top VCs, Privy Brings Proven Web3 Infrastructure

In March, Privy raised $15 million in a funding round led by Ribbit Capital, bringing its total funding to over $40 million. Other high-profile investors include Sequoia Capital, Paradigm, BlueYard, and Coinbase Ventures.

“From the beginning, Stripe impressed us with their vision and drive,” Privy added. “We share a common goal of uniting crypto and fiat to redefine how value moves across the web.”