After making significant progress towards its stablecoin launch, Stripe will acquire Privy, a crypto wallet provider.

Although Privy is not currently a leader in the crypto wallet market, it boasts 75 million accounts and partnerships with notable platforms such as trading firm Hyperliquid and NFT marketplace OpenSea.

The acquisition allows clients to embed crypto wallets directly into their applications using Privy’s protocols. Details of the deal have yet to be disclosed, but it is expected to significantly expand Privy’s ecosystem within Stripe.

Although Privy will operate independently under Stripe, both companies share a vision to bring crypto and fiat closer together, aiming to revolutionize digital value transfer.

Crypto and Fintech Dynamics

This deal marks another step in Stripe’s ongoing investment into the digital asset space. Shortly after acquiring stablecoin issuer Bridge for $1.1 billion, Stripe initiated trials of its dollar-backed stablecoin overseas.

The long-awaited stablecoin launch follows a series of crypto-related challenges and breakthroughs for Stripe. The company made an early attempt to process bitcoin payments several years ago but faced technical hurdles due to the complexity involved. Additionally, Stripe has been developing a stablecoin product for over a decade.

Strategic Play with Privy

The acquisition of Privy enhances Stripe’s position in the digital assets sector by integrating an embedded crypto wallet into its platform. Unlike other platforms, Stripe distinguishes itself through enterprise-grade and compliant products. The addition of this feature should strengthen its standing in the digital asset space.