TL;DR
- Stripe acquired Privy to integrate crypto wallets into user experiences and strengthen its native digital financial services offering.
- Privy enables platforms like OpenSea to automatically create wallets without requiring users to set up external wallets.
- Stripe will connect Privy’s wallets to its payment system and Bridge’s stablecoin infrastructure, while keeping Privy as an independent product.
Stripe confirmed the acquisition of Privy, a company specialized in creating crypto wallets integrated into user experiences.
The deal, whose financial terms were not disclosed, follows a clear strategy from Stripe, which recently also acquired Bridge, a firm focused on stablecoin infrastructure. Both acquisitions reflect the company’s aim to become a provider of digital financial solutions compatible with all types of digital assets.
How Does Privy Work?
Privy allows businesses to embed crypto wallets directly into their platforms, eliminating the need for users to set up external wallets. OpenSea, for instance, uses this service to let customers purchase NFTs without leaving the app. Privy generates wallets in the background, handles transactions, and simplifies a process that previously required relying on MetaMask or Coinbase Wallet. This reduced conversion rates and increased complexity for less technical users.
Founded in 2021 by Henri Stern and Asta Li, the company has raised over $40 million from investors including Ribbit Capital and Coinbase Ventures. In March of this year, it reached a $230 million valuation, according to data from PitchBook. Stern explained that Privy was created out of the need to make powerful tools accessible beyond technical audiences. The ability to integrate wallets without disrupting the user experience addressed one of the main obstacles in the adoption of these applications.
Stripe Will Connect Privy to Its Infrastructure and Bridge’s
Stripe plans to link Privy’s wallets to its payment solutions and the stablecoin infrastructure developed by Bridge. The goal is to offer a unified platform that enables businesses and developers to launch digital financial products that operate natively online. Despite the acquisition, Privy will continue to run as an independent product, following the same model Stripe applied with Bridge.
This comes amid growing institutional and corporate interest in stablecoins and integrated crypto services. Earlier this year, Stripe launched stablecoin-funded accounts to support international payments in USDC and USDB. The deal with Privy, still subject to closing conditions, is expected to be finalized in the coming weeks
