Stripe Acquires Privy to Bolster Crypto Wallet Infrastructure

Stripe, a leading global payment processor, has acquired Privy, a developer of cryptocurrency wallet infrastructure. The financial terms of the deal were not disclosed.

The acquisition, confirmed by Privy on Wednesday following an initial Bloomberg report, states that Privy will continue operating as an independent product embedded within the Stripe ecosystem. Privy emphasized its commitment to developers building on cryptocurrency platforms, highlighting increased resources and support.

Privy provides essential infrastructure for companies developing digital asset wallets, currently powering more than 50 million cryptocurrency wallets worldwide.

Stripe Eyes $250 Billion Stablecoin Market

Stripe’s increased focus on digital assets continues with this acquisition. Six years after largely stepping back from cryptocurrency, Stripe announced its return last year by enabling merchants to accept stablecoin payments, notably USDC.

In addition to this acquisition, Stripe has expanded its stablecoin services significantly. The company previously rolled out stablecoin accounts to clients across over 100 countries. As of May 7, Stripe users can send and receive dollar-pegged stablecoins integrated into their existing accounts.

Stripe’s co-president, John Collison, expressed growing institutional interest in stablecoins. He noted that financial institutions are actively considering how to integrate them into their offerings.

However, some analysts caution that traditional banks might resist widespread stablecoin adoption. Professor Austin Campbell suggests the US banking lobby is concerned about yield-bearing stablecoins potentially disrupting established financial models.

Conclusion

This acquisition reinforces Stripe’s strategy to become a key player in the cryptocurrency infrastructure space, while its broader expansion into stablecoins positions the company to capitalize on what may become a multi-hundred-billion dollar asset class.

Photo descriptions and sources added for clarity.