According to a report by Bloomberg yesterday (11), global online payment giant Stripe has once again taken action after acquiring stablecoin infrastructure company Bridge for a high price of $1.1 billion last year. Stripe has agreed to acquire cryptocurrency wallet provider Privy to further deepen its layout in the cryptocurrency field.
(Background: Payment giant Stripe launches ‘Stablecoin Accounts’ supporting USDC and USDB, available in over 100 countries. Can it be used in Taiwan?)
(Context: Payment giant Stripe is set to launch a new stablecoin! Challenging SWIFT cross-border payments, targeting pain points in emerging markets)
According to a report by Bloomberg yesterday (11), global online payment giant Stripe has agreed to acquire cryptocurrency wallet provider Privy to further deepen its layout in the cryptocurrency field. Although transaction details have not been disclosed, this move shows that Stripe is actively seizing opportunities in the emerging fintech market.
What is Privy?
Privy is a startup based in New York, founded in 2021, focusing on providing embedded cryptocurrency wallet solutions for businesses. Privy’s technology allows companies to seamlessly integrate wallet functionality into their applications without requiring users to set up external wallets. For example, the non-fungible token (NFT) marketplace OpenSea utilizes Privy’s technology, enabling customers to purchase NFTs directly on the platform, eliminating cumbersome wallet setup steps. Privy was founded by Henri Stern and Asta Li and has raised over $40 million, with a valuation of $230 million as of March this year.
Regarding the acquisition, Patrick Collison, co-founder and CEO of Stripe, stated in a statement:
“By integrating Privy’s wallet with Stripe and Bridge’s liquidity capabilities on a unified platform, we look forward to driving the next generation of global, internet-native financial services.”
Additionally, Bloomberg commented that Stripe’s acquisition actions indicate its intention to become the preferred provider for businesses when launching or adding their own cryptocurrency products. This move comes at a time when major tech companies such as PayPal, Visa, and traditional banks are showing a strong interest in blockchain and cryptocurrency technologies.
The Privy transaction still needs to meet certain conditions and is expected to be completed in the coming weeks.
Stripe Acquires Bridge, Competing in the Stablecoin Market
It is worth mentioning that prior to the acquisition of Privy, Stripe had already acquired stablecoin infrastructure company Bridge for $1.1 billion in October 2024, marking its largest acquisition to date.
Public information shows that Bridge was founded by former executives from Coinbase and Square, focusing on stablecoin payment infrastructure, helping businesses achieve low-cost, instant cross-border transactions. Its technology supports the movement, storage, and issuance of stablecoins, with clients including Coinbase and SpaceX. Bridge’s API allows businesses to easily accept stablecoin payments and supports USDC as well as its own USDB stablecoin.
Similar to Bridge, Privy will continue to operate as an independent product post-acquisition, but its technology will be integrated with Stripe’s payment infrastructure to enhance the interoperability between cryptocurrencies and fiat currencies.
Market Impact and Outlook
Stripe’s consecutive acquisitions indicate its desire to become a leader in cryptocurrency and stablecoin infrastructure, challenging traditional payment systems and competing with Visa and PayPal.
Privy’s embedded wallet technology lowers the barrier for users to enter the cryptocurrency ecosystem and is expected to drive the popularity of NFTs, gaming, and decentralized finance (DeFi). In the future, the integration of Stripe with Privy and Bridge may give rise to more innovative applications, such as AI-driven automated payments or cross-border e-commerce solutions. As global financial institutions show increasing interest in cryptocurrencies, whether Stripe can play a key role in the integration of fintech and blockchain and further promote cryptocurrency adoption deserves our continued attention.
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