Stripe Acquires Bitcoin Wallet Provider Privy
Stripe Inc. has announced its acquisition of Privy, a provider of Bitcoin and crypto wallet infrastructure. This marks Stripe’s second significant acquisition focusing on digital assets this year, following its $1.1 billion purchase of Stablecoin firm Bridge.
Privy specializes in enabling companies to integrate Bitcoin and crypto wallets into their applications and websites. For instance, the NFT marketplace Opensea utilizes Privy by generating wallets for users, simplifying the purchasing process without needing external wallet setups from services like MetaMask or Coinbase.
In a statement, Privy co-founder and CEO Henri Stern remarked, “When we started, the wallet was strong, but not accessible to everyone except the most technical. Developers faced challenges as they needed to direct users off-platform, which disrupted workflows and hampered user experiences. This friction limited what could be achieved with cryptographic technology.”
Founded in 2021 by Henri Stern and Asta Li in New York, Privy has recently raised $40 million from investors like Ribbit Capital, Definition, and Coinbase Ventures. The company was last valued at $230 million in March.
The announcement went on to say, “We started Privy over three years ago to empower developers to create better products using crypto. Whether cryptocurrency is central to an application or just an additional feature, a great crypto product should be as intuitive as any other quality product. Making crypto accessible can enhance usability for everyone.”
This acquisition is expected to boost interest in digital assets, building on Stripe’s earlier acquisition of Bridge. Earlier this year, Stripe unveiled an account aimed at facilitating Stablecoin transactions, allowing merchants to store funds and use Circle’s USDC and Bridge’s USDB for international payments. Like Bridge, Privy will continue to function as an independent product.
Privy is set to support over 75 million accounts and aid more than 1,000 developer teams, thus enabling billions in trading volume. Its clients, including Hyperliquid, Blackbird, Toku, and Farcaster, leverage Bitcoin and crypto infrastructure to create various real-world applications like trading, payments, and social platforms.
Patrick Collison, co-founder and CEO of Stripe, expressed enthusiasm about this development, saying, “We’re thrilled to facilitate a new wave of internet-native financial services through a cohesive platform that links Privy’s wallets with Stripe and Bridge’s financial capabilities.”
