Privy Acquired by Stripe to Enhance Crypto Wallet Capabilities

Privy, a prominent wallet provider, is a key component of several popular crypto platforms, including OpenSea, Pumpfun, Jupiter, Hyperliquid, and Digg 2.0. In June, payments giant Stripe acquired Privy, which will continue to operate as a separate product but with enhanced capabilities to move faster and ship more. Privy’s chief executive and co-founder, Henri Stern, brings a background in finance and engineering, having previously served as a research scientist at Protocol Labs before founding the crypto wallet firm.

In a recent interview, Stern discussed the evolving landscape of consumer crypto, highlighting three main angles: fintech, DeFi and trading, and consumer engagement. He noted that the definition of “consumer” in crypto has changed, moving from a technically literate developer base to a broader adoption by the general public. This shift has led to the emergence of a new category, “consumer finance,” which blends traditional finance and consumer-oriented applications.

Stern emphasized that the future of crypto will involve users managing multiple wallets tailored to different contexts and applications. He compared this to the way users manage their identities and settings on their iPhones, suggesting that a meta-level control center will be necessary for users to manage their multiple identities and assets across different applications. This control center would allow users to easily move assets between wallets and manage their risk settings, much like Apple’s System Preferences.

When asked about the rise of crypto “superapps,” Stern noted that while this concept is uncharted territory in the West, it has been successfully implemented in regions like China with apps like WeChat and Line. He believes that the future of crypto will see a variety of applications and platforms, with some potentially combining multiple features into a single app. Stern cited Farcaster as an example, which includes a wallet and mini apps for gaming and other activities.