Stripe Acquires Crypto Wallet Infrastructure Provider Privy

Stripe is acquiring crypto wallet infrastructure provider Privy, as part of its broader plan to make blockchain tools easier to integrate into mainstream digital products.

Stripe, the payments giant, is acquiring Privy, a crypto wallet infrastructure provider, as part of its broader plan to make blockchain tools easier to integrate into mainstream digital products.

Privy creates embedded wallets for apps and websites, aiming to streamline the user experience by eliminating the need for users to sign up for external crypto wallets like MetaMask.

The transaction, which was first reported by Bloomberg and confirmed by Privy, saw several investors in the startup's seed round convert their equity into debt. Terms of the deal weren't disclosed.

The firm’s technology is used by decentralized exchange Hyperliquid, restaurant loyalty firm Blackbird, and HR platform Toku to simplify onboarding and reduce user drop-off.

Privy revealed that since it was launched in 2021 by ex-Coinbase engineers, it has grown to power over 75 million accounts across over 1,000 teams “enabling billions in transactions across wallets, apps, and users.”

The New York-based firm has raised over $40 million in funding from investors including Paradigm, Coinbase, and Sequoia Capital, according to data from TheTie.

The acquisition comes after Stripe purchased Bridge, a stablecoin infrastructure firm, for $1.1 billion. That deal led to Stripe launching stablecoin-funded accounts, enabling businesses to hold and move funds abroad using tokens like USDC.

Privy will continue to operate independently but will be integrated into Stripe’s suite of crypto tools. The deal is expected to close in the coming weeks.