Stripe Acquires Privy to Enhance Cryptocurrency Strategy
Discover how Stripe's acquisition of Privy aims to revolutionize digital asset management by integrating seamless cryptocurrency infrastructure.
In a strategic move to bolster its cryptocurrency capabilities, Stripe has announced the acquisition of Privy, a New York-based cryptocurrency wallet infrastructure provider, as reported on June 11. This acquisition marks Stripe's continued commitment to digital asset innovation, following its $1.1 billion purchase of stablecoin platform Bridge earlier this year.
Privy is renowned for its ability to embed cryptocurrency wallets directly into websites and applications, eliminating the need for third-party tools like MetaMask or Coinbase. This capability is crucial for platforms such as OpenSea, Hyperliquid, Toku, and Farcaster, which require seamless wallet infrastructure to enhance user onboarding and retention.
Founded in 2021 by Henri Stern and Asta Li, Privy quickly gained traction, raising over $40 million from notable investors like Ribbit Capital, Definition, and Coinbase Ventures. As of March, the company was valued at $230 million. Privy has made significant strides in addressing one of the most challenging user-experience issues in the cryptocurrency space: the cumbersome nature of wallet setups. By simplifying the process, Privy has enabled developers to create crypto-enabled services that function as intuitively as traditional fintech products.
Under the new agreement, Privy will remain a standalone product, supporting over 1,000 developer teams and more than 75 million active accounts. These accounts are linked to billions of dollars in transaction volume, spanning payments, payroll, trading, and social applications.
The acquisition will see Privy integrate closely with Bridge and Stripe's core payments infrastructure, combining wallets, stablecoins, and fiat payments into a unified stack. Earlier this year, Stripe introduced stablecoin-funded merchant accounts powered by Circle's USDC and Bridge's USDB, indicating a clear trajectory towards comprehensive digital financial services.
Stripe's co-founder and CEO, Patrick Collison, emphasized the strategic importance of the acquisition, noting Privy's expertise in building programmable vaults as pivotal to Stripe's long-term vision. Both companies share a common belief in the evolution of digital finance beyond traditional boundaries, with a focus on creating internet-native financial services.
As Stripe and Privy join forces, the partnership is anticipated to accelerate product innovation and provide new tools for developers and businesses operating on digital rails. The integration is set to advance the movement of value across the internet, blending cryptocurrency-native infrastructure with modern financial services globally.