Payments giant Stripe has announced the acquisition of Privy, a New York-based crypto wallet infrastructure firm, in a move aimed at making digital asset onboarding easier and more accessible for developers and mainstream businesses. The acquisition, whose financial details remain undisclosed, is expected to close in the coming weeks.

This strategic move builds upon Stripe’s growing investment in the crypto ecosystem. It follows the company’s recent $1.1 billion purchase of Bridge, a firm focused on stablecoin infrastructure. Together, these acquisitions signal Stripe’s intention to become a key player in delivering Internet-native financial services for a global user base.

Bridging Crypto and the Mainstream

Privy enables seamless wallet integration within applications, eliminating the need for users to create external wallets through third-party providers such as MetaMask or Coinbase. Its core value lies in reducing friction for new users by embedding wallets directly into the apps and services they’re already using.

Major platforms like OpenSea, Blackbird, and Toku already utilise Privy’s wallet infrastructure to improve user onboarding and engagement. This embedded wallet model supports smoother crypto adoption, particularly for less tech-savvy users.

“When we started, wallets were powerful but inaccessible for all but the most technical,” said Privy co-founder and CEO Henri Stern. “By embedding wallets directly in apps, we’ve dramatically improved conversion and made crypto easier to access.”

Founded in 2021 by Henri Stern and Asta Li, Privy has seen rapid adoption, supporting over 75 million accounts and facilitating billions of dollars in transactions for more than 1,000 client teams.

A Unified Blockchain Infrastructure Vision

Stripe’s acquisition of Privy reflects its broader ambition to offer a comprehensive digital asset platform. With Bridge powering stablecoin transactions and Privy enabling wallet infrastructure, Stripe is building a cohesive toolkit for developers and businesses exploring blockchain-based financial services.

Patrick Collison, Stripe’s co-founder and CEO, highlighted this vision, stating:

“With a unified platform, connecting Privy’s wallets to the money movement capabilities in Stripe and Bridge, we’re enormously excited to enable a new generation of global, Internet-native financial services.”

Although Privy will continue to operate independently, its core technology will be integrated into Stripe’s ecosystem, allowing clients to leverage wallet services alongside payments, compliance, and stablecoin tools in a streamlined offering.

Reviving and Scaling Stripe’s Crypto Ambitions

Stripe’s return to the crypto space has been marked by a renewed focus on usability and compliance. After previously pausing crypto initiatives in 2018 due to scalability concerns, Stripe re-entered the market by supporting USDC (USD Coin) stablecoin payments.

Recently, Stripe has expanded its services to include stablecoin-funded business accounts, allowing companies to hold and distribute funds across more than 100 countries using stablecoins. The firm’s latest acquisitions reflect a desire to offer end-to-end financial services grounded in blockchain infrastructure.

John Collison, Stripe’s co-founder, noted a surge in institutional demand for stablecoin integration:

“Financial institutions are now much more interested in incorporating stablecoins into their product offerings.”

Positioning for a Blockchain-Driven Future

The global stablecoin market now exceeds $250 billion in value, and Stripe is positioning itself to serve both fintech upstarts and enterprise giants with a robust crypto infrastructure stack. With Privy’s embedded wallet tech and Bridge’s stablecoin rails, Stripe is building towards a financial future that is borderless, programmable, and user-friendly.

Privy’s high-profile investor backing from firms like Ribbit Capital, Sequoia Capital, Paradigm, Coinbase Ventures, and Definition underlines its strategic importance. Its last known valuation stood at $230 million in March, according to Pitchbook.