Stripe Expands Crypto Bet With Privy Acquisition Amid Stablecoin Momentum

Wallet Infrastructure Deal Boosts Stripe’s Digital Asset Push

Stripe has acquired Privy, a crypto wallet infrastructure startup that quietly powers over 50 million wallets worldwide, marking a deepening commitment by the global payments giant to the digital asset space. The acquisition, disclosed Wednesday by Privy through a public announcement, follows Stripe’s strategic return to crypto via stablecoins in late 2024, underscoring its broader effort to modernize financial transactions through blockchain technology. Privy noted that it will remain an independent product within the Stripe ecosystem but will now benefit from greater resources, flexibility, and operational firepower.

The acquisition, first reported by Bloomberg, didn’t disclose a transaction value, but its implications are significant. Stripe had exited the crypto space in 2018, only to re-enter the market with force last October when it began enabling merchants to accept USD Coin (USDC) payments. That move re-established Stripe as a serious player in stablecoin infrastructure, positioning it to serve the estimated $250 billion stablecoin market. Since then, the company has launched stablecoin accounts in over 100 countries, allowing users to send and receive dollar-pegged tokens as easily as they would traditional fiat.

Stripe’s growing presence in crypto comes amid a broader shift in institutional sentiment. Co-founder and President John Collison told Bloomberg that financial institutions around the world are actively exploring how to integrate stablecoins into their own product offerings. While Stripe pushes forward, however, some observers remain skeptical about traditional banking’s willingness to follow. NYU professor Austin Campbell recently stated that U.S. banks are “panicking” over the rise of yield-bearing stablecoins, which he argues could undermine traditional banking models by offering consumers interest-bearing alternatives.

By adding Privy to its portfolio, Stripe is doubling down on crypto-native infrastructure at a time when institutional engagement and user demand are converging. Though Privy remains relatively unknown outside of developer circles, its technology already supports tens of millions of wallets, suggesting its role as a quiet but critical enabler of Web3 adoption. Now backed by Stripe’s global reach and financial muscle, Privy is positioned to play a larger part in shaping the future of crypto payments.

This article has been refined and enhanced by ChatGPT.