Stripe Acquires Crypto Wallet Startup Privy, Terms Not Disclosed.

Stripe has acquired crypto wallet startup Privy, with terms not disclosed. The deal is expected to close in the coming weeks. Stripe CEO Patrick Collison said the acquisition will enable the company to build "a new generation of global, internet-native financial services." The news comes after reports of Stripe discussing stablecoin use with banks.

Stripe, the global payments giant, has announced the acquisition of crypto wallet startup Privy in an undisclosed deal that is expected to close in the coming weeks. The acquisition aims to bolster Stripe's cryptocurrency capabilities, particularly in the stablecoin market.

The acquisition is part of Stripe's broader strategy to build a new generation of global, internet-native financial services. Stripe CEO Patrick Collison stated that the acquisition will enable the company to offer comprehensive crypto infrastructure solutions, combining Privy's wallet integration with Stripe's stablecoin payment rails.

Privy, founded in 2021 by Henri Stern and Asta Li, has emerged as a key infrastructure provider for companies seeking to integrate crypto wallets directly into their platforms without the traditional friction-heavy process of creating external wallets. Privy powers over 75 million accounts across more than 1,000 teams while facilitating billions in transaction volume [1].

The acquisition follows Stripe's previous major crypto deal, the $1.1 billion purchase of stablecoin platform Bridge. This move positions Stripe to offer end-to-end crypto infrastructure solutions, addressing the growing demand for stablecoin adoption among businesses and institutions [2].

The timing of Stripe's aggressive crypto expansion reflects broader institutional momentum and diversification toward digital assets. According to recent reports, blockchain technology is now in active development at 60% of Fortune 500 companies, and nearly one in five executives considers on-chain initiatives a key strategic priority [3].

Stripe's renewed focus on cryptocurrencies began in 2014 when it became the first major payments processor to support Bitcoin transactions. However, the company subsequently halted Bitcoin support due to network inefficiencies and high fees before rebuilding its blockchain team in 2021. The company's renewed crypto ambitions accelerated in October 2024 with the launch of stablecoin payment options that achieved rapid adoption across 70 countries on their first day [1].

The acquisition of Privy comes as Stripe continues to expand its stablecoin offerings. In May, Stripe introduced Stablecoin Financial Accounts, which allow companies in 101 countries to hold and transact in digital dollars. This product supports Circle’s USDC and Bridge’s USDB stablecoins, with plans for additional integrations [1].

The acquisition of Privy aligns with Stripe's strategic infrastructure play to address growing market demand. Over 81% of crypto-aware small and medium-sized businesses express interest in stablecoin adoption to address financial challenges [2]. The deal may also position Stripe for competitive positioning as other payment giants, including Visa and Mastercard, accelerate their own crypto initiatives.

Stripe expects the Privy transaction to close within the coming weeks, and the startup will continue to operate as an independent product similar to the Bridge acquisition structure. The acquisition underscores Stripe's commitment to leveraging emerging technologies to provide innovative financial services to businesses and consumers worldwide.

References:
[1] https://cryptonews.com/news/stripe-privy-acquisition-stablecoin-boom/
[2] https://www.siliconrepublic.com/business/stripe-privy-acquisition-crypto-wallet-infrastructure
[3] https://www.dlnews.com/articles/deals/stripe-privy-acquisition-is-huge-for-stablecoin-payments/