Stripe's encryption layout adds a new layout and will acquire crypto wallet company Privy

Comprehensive editor: Felix, PANews

On June 12, US payment processor Stripe announced the acquisition of crypto wallet infrastructure company Privy, which will be included in Stripe, but will continue to operate as an independent product. The acquisition is expected to be completed in the next few weeks, and the specific terms of the transaction have not been disclosed.

What is the difference between Privy?

Privy's embedded wallet allows developers to build simpler introductory experiences, such as allowing users to create encrypted wallets without memory or recording mnemonics. In addition, Privy allows users to hold assets or perform operations directly in supported crypto applications without having to connect to third-party wallets such as MetaMask for transactions. For example, OpenSea uses Privy, which allows customers to purchase NFTs directly from their platform. Privy creates a wallet for consumers in the background to make them easy for them to purchase. Before working, OpenSea customers need to create an external wallet through providers such as MetaMask or Coinbase Wallet and link it to their own accounts.

"When we were just starting out, the wallet was powerful, but no one else could use it except the skilled talent. Developers had to direct users outside the platform to get started, which undermined user processes and hindered user conversions. This resistance fundamentally limits future developments in the crypto space."

New York-based Privy was co-founded by Stern and Asta Li, who was a founding engineer at Aurora before founding Privy. Stern worked as a researcher at the Web3 company Protocol Labs. Founded in 2021, the startup recently raised $15 million in a round led by Ribbit Capital, bringing the total amount to more than $40 million. Other investors include Sequoia Capital, Paradigm, BlueYard and Coinbase Ventures. According to Pitchbook data, Privy's latest valuation in March this year was $230 million.

Privy claims that within three years, its technology has been widely used throughout the industry, supporting more than 75 million accounts and 1,000 development teams, including mainstream crypto applications such as Pump.fun, Hyperliquid, OpenSea, as well as restaurant loyalty program startup Blackbird and global recruitment company Toku.

Regarding the acquisition of Privy, Stripe Co-founder and CEO Patrick Collison said in a statement: “With a unified platform connecting Privy’s wallet with Stripe and Bridge’s capital flow capabilities, we are very pleased to be able to realize a new generation of global Internet native financial services.”

Stripe's crypto journey

Stripe's cryptographic layout began in 2014. Stipe was one of the first payment companies to accept Bitcoin in 2014, but stopped the business in 2018 due to scalability issues and high transaction fees. Nevertheless, the company insisted at the time that it was "very optimistic about the overall outlook for cryptocurrencies".

Stablecoins are Stripe's next attempt. In April 2024, the company announced that it would support USDC payments this summer. Then in October, Stripe launched the "Pay with Crypto" public beta feature, allowing U.S. companies to accept stablecoin payments and automatically convert them into fiat currency to deposit them into Stripe accounts. Supported stablecoins include USDC and USDP, covering Ethereum, Solana and Polygon chains. In the first week of launching stablecoin payments, Stripe's stablecoin transaction volume exceeded its entire history of providing Bitcoin transactions.

But Stripe still lacks a key component that requires a seamless approach to cross-border transactions. In November 2024, Stripe confirmed the acquisition of stablecoin payment platform Bridge for US$1.1 billion, and the transaction was finally completed in February 2025. This is Stripe's largest acquisition deal to date, marking its major layout in the stablecoin field. The acquisition of Bridge enables it to optimize cross-border payment solutions and expand its stablecoin payment infrastructure.

In May 2025, Stripe launched stablecoin accounts in more than 100 countries, aiming to help merchants hold funds and pay overseas suppliers using USDC and self-issued USDB stablecoins from Circle Internet Group Inc.

Stripe's series of actions suggest that the company is interested in becoming the preferred supplier of customers who want to increase support for crypto products or launch their own crypto products, and now, from large tech companies to traditional banks, companies have shown a strong interest in exploring crypto technology.