Stripe Acquires Privy, Expands Crypto Wallet Offerings
Following its progress towards launching a stablecoin, Stripe has decided to acquire crypto wallet provider Privy.
Athough Privy is not currently a major player in the crypto wallet market, it boasts 75 million accounts and partnerships with platforms such as trading firm Hyperliquid and NFT marketplace OpenSea.
Privy’s technology allows clients to integrate crypto wallets directly into their own platforms. The deal’s specifics remain undisclosed, but it is expected to significantly expand Privy’s network.
Despite the acquisition, Privy will continue to function independently. In a social media statement, both companies expressed a mutual goal of bridging crypto and fiat currencies to revolutionize digital value transfer.
Stripe’s Continued Investment in Digital Assets
This move is part of Stripe’s ongoing investment in the digital assets space, following its significant acquisition of stablecoin issuer Bridge. Shortly after that deal, Stripe initiated trials for its own dollar-backed stablecoin overseas.
The long-awaited launch comes at a time when Stripe has faced various challenges and setbacks with crypto, including earlier attempts to process bitcoin payments which proved too resource-intensive. The company has been working towards introducing a stablecoin for over a decade.
Enter the Stablecoin Market
Momentum is growing for Stripe as it partners with Coinbase to enable users to receive payouts and convert fiat into stablecoins like Circle’s USDC and Pax Dollar. The launch of its own stablecoin will position Stripe in a dynamic $250 billion market, competing against established players such as PayPal.
PayPal’s PYUSD coin, launched two years ago, has yet to gain significant market share from competitors like Tether and Circle, but the company is banking on its strong customer base and relationships with institutional investors for future growth. Stripe may aim to leverage similar strategies to solidify its presence in the digital assets sector.