On June 11 it was announced that Stripe will acquire Privy, a New York‑based provider of wallet APIs and embedded self‑custodial wallets. Terms weren’t disclosed, but the purchase is Stripe’s second major crypto bet this year, following its $1.1 billion acquisition of stablecoin infrastructure firm Bridge in February. Privy will continue to operate as an independent product inside Stripe’s ecosystem, according to statements from both companies.

What Is Privy?

Founded in 2021 by Henri Stern and Asta Li, Privy supplies developers with an SDK that bundles authentication, key management, and fully self‑custodial wallets behind a few lines of code. The company has raised more than $40 million from investors including Paradigm, Sequoia, Coinbase Ventures, and Ribbit Capital, and its toolkit already powers user wallets at apps such as Hyperliquid, Blackbird, Toku, and Farcaster.

Why Stripe Wants Wallet Infrastructure

Stripe re‑enabled crypto payments in 2024 and, with Bridge, rolled out stable‑coin financial accounts that let businesses hold and send USDC or Bridge’s USDB. Privy fills the next big gap: letting those same merchants (or any Stripe‑powered platform) create on‑chain wallets for end users without forcing them to download MetaMask or leave the checkout flow. In other words, Stripe can now own the entire stack—fiat on‑ramps, stable‑coin rails, and user wallets—through a single API.

What Could Change for Stripe Customers

• One‑click Web3 onboarding: Merchants using Stripe Connect could offer a 'Sign in with Stripe' flow that silently provisions a self‑custodial wallet tied to the user’s email or phone.
• Programmable payouts: Marketplaces will be able to settle earnings or loyalty rewards directly to users’ wallets in USDC or USDB, bypassing costly bank transfers.
• Token‑gated commerce: With wallets native to Stripe, e‑commerce sites can gate products or discounts behind NFT ownership checks the same way they gate access via passwords today.
• Regulatory plumbing handled: Privy’s encryption‑by‑default key management combined with Stripe’s KYC stack provides a compliant path for companies operating in multiple jurisdictions.

Stripe has not released a public roadmap, but executives said Privy’s tech will surface across Stripe Issuing, Connect, and Checkout in the coming quarters.

Signals for Broader Crypto Adoption

Stripe processes payments for millions of businesses; folding wallet creation into that footprint attacks one of crypto’s thorniest UX problems—forcing users off‑site to set up wallets. If every Uber‑like, Shopify‑like, or Patreon‑like platform can give users a wallet without them noticing, crypto rails become invisible plumbing rather than a separate financial world.

The deal also fits a bigger pattern: PayPal, Revolut, and even Bank of America have all signaled interest in stablecoins this year. Stripe’s move strengthens the notion that mainstream fintechs now see digital dollars and on‑chain assets as complementary, not cannibalistic, to existing payment networks.

Industry Reactions

Developers welcomed the news on X, noting that Privy’s APIs already reduced sign‑up abandonment rates by keeping users in‑app. Investors point out that Stripe’s scale could force rivals like Adyen or PayPal to acquire similar wallet tech or double down on partnerships with players like Fireblocks.

Regulatory watchers, meanwhile, say Stripe’s regulated‑entity status and global compliance team could serve as a template for wallet‑as‑a‑service offerings that satisfy both self‑custody purists and governments demanding safeguards.

What Comes Next

Privy’s team will stay in New York but embed with Stripe’s crypto engineering group in Dublin and San Francisco. Early pilot programs are expected later this year, and Stripe hinted that consumer‑facing wallet features could appear at its annual Sessions conference in 2026.

If that timeline holds, the line between a 'crypto wallet' and a 'Stripe account' may soon disappear—making Web3 capabilities feel as native as card payments did a decade ago.