Payments giant Stripe has purchased Privy, a startup specializing in embedded wallet infrastructure, to enhance its cryptocurrency capabilities and speed up the merger of digital assets with traditional payment methods.
Privy, founded in 2021, has developed technology that allows developers to incorporate cryptocurrency features into their applications without requiring users to switch to external wallets. The company currently supports over 75 million accounts across more than 1,000 developer teams, handling billions in transaction volume.
This acquisition follows Stripe’s $1.1 billion purchase of stablecoin platform Bridge last year, highlighting the company’s growing interest in cryptocurrency infrastructure. Stripe had previously stepped back from crypto offerings in 2018 but re-entered the space as institutional adoption increased.
Privy’s technology addresses a major hurdle in crypto adoption by simplifying user interactions with blockchain applications. The company’s API enables developers to create wallets, sign transactions, and integrate blockchain systems while maintaining a user-friendly experience.
The acquisition aligns with Stripe’s recent expansion of stablecoin capabilities, including new financial accounts that allow businesses to hold stablecoin balances and send funds globally. Privy’s embedded wallet infrastructure could potentially enhance these offerings by streamlining user onboarding.
Prior to the acquisition, Privy had raised $40 million in total funding, with its most recent $15 million round led by Ribbit Capital and supported by Sequoia Capital and Coinbase Ventures. The terms of the Stripe acquisition and Privy’s valuation remain undisclosed.
Stripe has stated that Privy will continue to operate as an independent product while benefiting from Stripe’s resources and scale. The deal is expected to close in the coming weeks, subject to standard closing conditions.
