TL;DR
- Stripe is acquiring Privy, a crypto wallet infrastructure provider, to expand its Web3 product suite.
- Privy’s embedded wallet tech, used by platforms like OpenSea and Hyperliquid, simplifies onboarding by eliminating third-party wallet sign-ups.
- The deal follows Stripe’s $1.1B acquisition of Bridge, a stablecoin infrastructure firm.
- Privy will operate independently but will be integrated into Stripe’s crypto offerings post-acquisition.
Stripe Expands Its Web3 Ambitions with Privy Acquisition
Stripe is making another bold move into blockchain infrastructure by acquiring Privy, a startup known for powering embedded crypto wallets that streamline onboarding for Web3 platforms. The acquisition highlights Stripe’s growing interest in creating a frictionless crypto experience for developers and users.
The deal comes just months after Stripe’s $1.1 billion acquisition of Bridge, a stablecoin payments startup. With Privy under its umbrella, Stripe is poised to provide a full-stack solution for crypto-native applications.
Embedded Wallets: The Core of Privy’s Value Proposition
Privy’s core offering revolves around embedded wallets, which allow apps and websites to manage crypto functionality without requiring users to download or interact with third-party wallets like MetaMask. This results in significantly reduced user drop-off—a major pain point in crypto app adoption.
Privy’s technology is already used by major platforms including:
- Hyperliquid – a decentralized exchange
- Blackbird – a restaurant loyalty platform
- Toku – an HR and compliance startup focused on token-based compensation
These integrations demonstrate Privy’s ability to blend secure Web3 access into consumer-friendly interfaces.
Transaction Scale and Growth Metrics
Since its launch in 2021, Privy has grown at an aggressive pace:
- Over 75 million accounts supported
- 1,000+ development teams using its tools
- Billions of dollars in wallet-based transactions processed
The company has raised over $40 million in funding from institutional players such as:
Privy Funding & Adoption Metrics
| | Metric | Value | Source | |
| |—————————–|———————————-|——–| |
| | Accounts Powered | 75M+ | TheTie | |
| | Teams Using Privy | 1,000+ | TheTie | |
| | Venture Funding | $40M+ | TheTie | |
Strategic Rationale for Stripe
Stripe’s interest in Privy fits into a broader crypto infrastructure strategy aimed at simplifying blockchain integration for developers and businesses.
With the Bridge acquisition, Stripe introduced stablecoin-funded accounts that let companies hold and move funds globally using USDC and similar tokens.
Adding Privy enables Stripe to:
- Provide secure, user-friendly wallet solutions
- Reduce Web3 app onboarding friction
- Support compliant crypto infrastructure at scale
Stripe’s endgame seems to be positioning itself as a crypto-native payment layer for internet-scale applications.
What Happens Next?
The transaction is expected to close in the coming weeks. While Privy will continue to operate independently, it will become deeply integrated into Stripe’s crypto suite, giving developers seamless access to both wallet management and stablecoin infrastructure in one place.
Privy’s integration into Stripe could set a new standard for Web3 infrastructure by combining ease-of-use with financial-grade compliance and performance.
Market Implications: A Push for Mainstream Adoption
The move underscores how leading fintech firms like Stripe are adapting to serve the next evolution of the internet. By embedding Privy, Stripe is reducing complexity for developers and democratizing access to blockchain tech.
This acquisition could help Stripe become the default gateway for both Web2 and Web3 financial services, aligning with broader industry trends of:
- Wallet abstraction
- Programmable payments
- Cross-border stablecoin transactions
The ability to unify these layers under a trusted brand like Stripe could accelerate mainstream crypto adoption dramatically.
Conclusion: Stripe’s Position in the Web3 Race Strengthens
With the acquisition of Privy, Stripe is no longer just experimenting with crypto—it is building foundational infrastructure. This strategic move places Stripe in direct competition with both traditional fintech firms and crypto-native providers like Fireblocks and Alchemy.
If the deal unfolds as expected, Stripe could soon offer one of the most comprehensive crypto toolkits available to developers—bridging the gap between the ease of Web2 and the potential of Web3.
