From Payment Tools to Cryptocurrency Wallets: Stripe Acquires Privy to Create a New Gateway for On-Chain Finance

Global payment platform Stripe announces acquisition of crypto wallet infrastructure Privy

Stripe has announced the acquisition of crypto wallet infrastructure Privy, which not only demonstrates Stripe’s determination to expand into the crypto space but also reveals its vision for the future of digital value transfer: “A seamless integration of fiat and crypto financial networks.” Privy stated that it will continue to operate independently within the Stripe ecosystem, enhancing the developer experience and simplifying the wallet usage process for users.

Stripe’s acquisition of Privy enhances payment experience

Stripe recently completed its acquisition of Privy, although the specific amount was not disclosed; this transaction is viewed as a significant step in its entry into the crypto ecosystem.

1/ Today, we’re proud to announce that Stripe is acquiring Privy.
We couldn’t be more excited.
Privy will continue as an independent product – but now we’ll move faster, ship more, and serve you even better, so you can stay focused on your users.
pic.twitter.com/8CHJqhqYy7
— Privy (@privy_io) June 11, 2025

Privy focuses on providing “embedded crypto wallet” infrastructure, allowing developers to build wallet functionalities directly into their applications. Users no longer need to download MetaMask or write down backup mnemonic phrases to easily enter the crypto world. According to official data, Privy’s technology supports over 50 million crypto accounts and is adopted by mainstream applications such as OpenSea, Pump.fun, and Hyperliquid. Stripe CEO Patrick Collison stated:

“Money needs a place to reside, and Privy is building the world’s most powerful programmable vault. In addition to focusing on stablecoin work, we look forward to jointly promoting global and internet-native financial services.”

Stripe’s return to crypto after a six-year hiatus

This is not Stripe’s first foray into crypto; it supported Bitcoin payments as early as 2014 but stepped away from the crypto business for six years before making a strong comeback last year. In April of last year, Stripe reopened USDC stablecoin payment functionality, acquired the stablecoin payment platform Bridge, and launched stablecoin accounts in April of this year for users in over 100 countries worldwide.

(Stripe is expanding globally! Launching stablecoin product testing, targeting overseas markets)

Co-founder John Collison told Bloomberg that through these initiatives, Stripe is actively positioning stablecoins as a new payment tool alongside traditional bank accounts: “Banks are trying to understand how to integrate stablecoins and incorporate them into their product offerings.”

Privy addresses users’ greatest pain point: simplifying on-chain experience

With most wallet tools still requiring users to remember mnemonic phrases and import browser extension plugins, Privy’s focus on “no mnemonic phrases and embedded in-app wallets” significantly lowers the entry barrier to Web3. This seamless login and asset management method makes Privy a key driver of Web3 application conversion rates.

(How will embedded wallets change the user experience and business logic in the Web3 industry?)

From a development perspective, Privy offers a set of APIs and infrastructure that allows developers to quickly integrate wallet functionalities without the need to establish cumbersome key management mechanisms. This also enables Stripe to further provide a one-stop solution for crypto payments and user management, reinforcing its position as an intermediary in crypto transactions:

“Today, the intersection of digital ownership and the global financial system is closer than ever. Stripe, like us, is committed to erasing the boundaries between crypto and fiat, allowing for deep integration of both.”

Can stablecoins disrupt the banking system?

Many, including Stripe, are optimistic about the future of stablecoins, but there are also some reservations. U.S. senators have pointed out that some banks feel anxious about “interest-bearing stablecoins,” fearing that if stablecoins start paying interest, it could disrupt banks’ deposit and lending models.

(Coinbase CEO calls for open “on-chain interest”: Stablecoin legislation should allow everyone to share interest rate dividends)

Thus, whether banks will embrace stablecoins in the future still depends on regulatory attitudes and market acceptance. However, it is undeniable that technology companies like Stripe are gradually making crypto finance a part of everyday life.

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile; you may lose all your principal. Please assess the risks carefully.