Stripe Acquires Crypto Wallet Firm Privy Amid Web3 Push
Date: June 11, 2025
In a strategic move to bolster its engagement in the digital assets space, Stripe, the global payment processing giant, has acquired Privy, a developer specializing in cryptocurrency wallet infrastructure. The acquisition was confirmed by Privy through a Wednesday announcement on social media, although the financial details of the deal have not been disclosed.
Expanding Digital Asset Capabilities
Following Stripe’s recent foray into the stablecoin market, which began in earnest in 2024, the acquisition of Privy signals a significant commitment to enhancing its digital asset offerings. Privy has positioned itself as an essential player in the crypto industry, providing technology that currently supports over 50 million cryptocurrency wallets worldwide. The company stated that it will continue to operate as an independent product within the Stripe ecosystem, reaffirming its mission to aid developers in building on crypto rails with "more resources, flexibility, and firepower."
Stripe’s Growing Focus on Stablecoins
Stripe’s return to cryptocurrency came after a six-year hiatus from the industry, which it had exited in 2018. In October 2024, the payment processor enabled merchants to accept payments in stablecoins, focusing on the USDC (United States Dollar Coin). This initiative has rapidly gained traction, with recent reports indicating that Stripe has expanded stablecoin account capabilities to clients in over 100 countries. By May of this year, Stripe users are now able to send and receive US dollar-pegged stablecoins similar to traditional bank account functionalities.
Stripe’s co-founder and president, John Collison, highlighted the growing interest from global financial institutions regarding stablecoins, noting that there is substantial curiosity about how banks might integrate these assets into their product offerings.
Market Context and Future Prospects
The global stablecoin market has experienced significant expansion over the past year, now estimated to be valued at over $250 billion, according to data from CoinGlass. However, the migration toward stablecoins is not without its challenges. Concerns have been raised about whether traditional banks will readily adopt this new asset class. NYU professor Austin Campbell recently remarked that the US banking lobby appears to be “panicking” over the potential impact of yield-bearing stablecoins, which some analysts believe could threaten the current banking business model by offering consumers interest-bearing options outside traditional banking solutions.
As Stripe strengthens its position in the crypto space, its acquisition of Privy may provide the necessary infrastructure to meet the growing demands of both developers and consumers in a rapidly evolving financial landscape.
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