Stripe Acquires Wallet Infrastructure Startup Privy to Accelerate Crypto-Fiat Integration

Stripe has acquired embedded wallet infrastructure startup Privy in a move to deepen its crypto capabilities and accelerate the integration of digital assets with traditional payment systems.

Founded in 2021, Privy develops embedded wallet infrastructure that enables developers to integrate cryptocurrency functionality without requiring users to leave their applications or manage external wallets. The company powers over 75 million accounts across more than 1,000 developer teams, orchestrating billions in transaction volume.

"Today, digital ownership and the financial systems that run the modern world are intersecting as never before," said Privy co-founders Henri Stern and Asta Li in a blog post announcing the deal. "Like us, Stripe believes in the power of bringing crypto and fiat closer together, marrying these systems so deeply that the distinction becomes almost meaningless."

The acquisition follows Stripe's $1.1 billion purchase of stablecoin platform Bridge last year—its largest acquisition to date—signaling the payments giant's serious commitment to cryptocurrency infrastructure. Stripe had initially paused crypto offerings in 2018 but returned to the space after a six-year hiatus as institutional adoption accelerated.

Privy's embedded wallet technology addresses a key friction point in crypto adoption by allowing users to interact with blockchain applications without the complexity of traditional crypto wallets. The company's API enables developers to securely create wallets, sign transactions, and integrate blockchain systems while maintaining familiar user experiences.

Notable Privy customers include derivatives platform Hyperliquid, restaurant payments service Blackbird, global payroll platform Toku, and decentralized social network Farcaster.

"When we started, wallets were powerful but inaccessible for all but power users," the Privy team noted. "Developers had to send users off-platform to get started, breaking flows and killing user conversion. That friction fundamentally constrained what could be built in crypto."

The timing aligns with Stripe's recent expansion of stablecoin capabilities , including new financial accounts that allow enterprises to hold stablecoin balances, receive funds on both crypto and fiat rails, and send stablecoins globally. Privy's embedded wallet infrastructure could enhance these offerings by providing seamless user onboarding.

Privy entered the acquisition having recently raised $15 million in funding led by Ribbit Capital, with participation from Sequoia Capital and Coinbase Ventures, bringing its total funding to $40 million. The company's valuation remains undisclosed, as do the terms of the Stripe acquisition.

Stripe emphasized that Privy will continue operating as an independent product while benefiting from Stripe's resources and scale. The deal is subject to customary closing conditions and is expected to close in the coming weeks.