Stripe Doubles Down on Crypto With Privy Acquisition

Payments giant Stripe strengthens its crypto infrastructure with the acquisition of wallet startup Privy amid surging stablecoin demand.

Stripe is deepening its commitment to the cryptocurrency space with the acquisition of Privy, a leading crypto wallet infrastructure startup. The move, announced on June 11, marks Stripe’s second major foray into the crypto sector in recent months, following its $1.1 billion purchase of stablecoin platform Bridge. The financial terms of the Privy deal were not disclosed, but the strategic implications are significant: Stripe is rapidly building an end-to-end crypto infrastructure offering to capture the booming demand for digital assets—especially stablecoins.

Stripe’s Crypto Expansion Hits New Milestone

Privy, founded in 2021 by Henri Stern and Asta Li, has become a go-to provider for companies seeking seamless crypto wallet integrations. Unlike traditional wallet solutions that often require users to onboard through third-party apps like MetaMask or Coinbase Wallet, Privy’s API-driven approach enables direct wallet functionality within existing platforms, eliminating onboarding friction and streamlining the user experience.

Privy’s technology currently supports over 75 million user accounts across more than 1,000 teams, with billions of dollars in transaction volume already processed. For Stripe, acquiring Privy is not just about improving the user experience—it’s a clear play to offer businesses a comprehensive suite of crypto tools that merges wallet creation, stablecoin payments, and fiat integration into a single ecosystem.

This aligns closely with the broader market dynamics: stablecoins settled $27.6 trillion in transactions in Q1 2025 alone, outpacing Visa’s entire 2023 settlement volume by more than double. That meteoric growth is driven by increasing adoption among institutions, fintech platforms, and small businesses alike.

Strategic Timing Amid Explosive Market Growth

Stripe’s latest move reflects a carefully timed response to both market momentum and regulatory clarity. The first quarter of 2025 ushered in unprecedented regulatory advancements, removing long-standing institutional roadblocks and opening the floodgates to investment. Recent legislative progress, including movement on the bipartisan GENIUS Act and the reintroduction of the Blockchain Regulatory Certainty Act, has further reassured companies considering digital asset integration.

As a result, over 80% of institutional investors now plan to increase their crypto exposure in 2025, with stablecoins being the primary entry point. The stablecoin market has seen a 54% year-over-year growth in supply, while the number of global stablecoin holders has surpassed 161 million.

This environment has been fertile ground for Stripe’s renewed crypto ambitions. After first entering the space in 2014 as one of the earliest payment processors to support Bitcoin, Stripe paused its crypto efforts due to network inefficiencies and high fees. However, it re-entered the space in 2021 with a rebuilt blockchain team and a more focused strategy.

That strategy has taken off in recent months. In October 2024, Stripe launched stablecoin payment functionality, which saw immediate adoption across 70 countries on launch day. In May 2025, the company introduced Stablecoin Financial Accounts, allowing businesses in 101 countries to hold and transact in digital dollars. These accounts currently support USDC from Circle and USDB from Bridge, with plans for additional stablecoin integrations underway.

Privy Acquisition Complements Stripe’s Vision

The acquisition of Privy serves as a vital puzzle piece in Stripe’s broader mission to simplify crypto adoption for mainstream businesses. By integrating wallet infrastructure directly into its platform, Stripe can now support businesses through the full crypto payment lifecycle—from wallet creation to stablecoin settlement and fiat conversion.

This end-to-end approach is particularly relevant for small and medium-sized businesses (SMBs), where crypto awareness is at an all-time high. According to recent industry data:

• Over one-third of SMBs already use cryptocurrencies
• 46% plan to adopt digital assets within the next three years
• 81% of crypto-aware SMBs are actively exploring stablecoin adoption

These businesses cite familiar challenges: high transaction fees, slow cross-border payments, and currency volatility—all of which stablecoins are well-positioned to solve. Stripe’s unified offering, especially when paired with Privy’s seamless wallet functionality, directly addresses these pain points.

Competing With the Legacy Giants

Stripe isn’t alone in chasing the crypto opportunity. Visa, Mastercard, and other payment giants have also ramped up their blockchain initiatives. Stripe’s recent partnership with crypto on-ramp provider Ramp is a response to this growing competition. The two companies launched stablecoin-backed corporate cards, designed to offer businesses enhanced cross-border functionality with faster settlement, lower costs, and currency risk mitigation.

These cards initially rolled out in Latin America, with subsequent expansion to Europe, Africa, and Asia—markets where cross-border inefficiencies are particularly costly for businesses.

Stripe’s aggressive moves suggest it intends to become the default payments and crypto infrastructure provider for the next wave of internet-native businesses. By acquiring both Bridge and now Privy, the company is assembling a vertically integrated stack that could rival not just crypto startups, but entrenched financial networks as well.

What’s Next for Privy and Stripe?

Stripe plans to let Privy continue operating as an independent product, similar to how it structured its earlier Bridge acquisition. This autonomy likely aims to preserve Privy’s developer-focused brand while accelerating integration into Stripe’s ecosystem.

The deal is expected to close in the coming weeks, and both companies are already laying the groundwork for future product synergies. If executed successfully, Stripe could offer a frictionless, all-in-one platform that allows businesses—from startups to multinationals—to onboard users, accept stablecoin payments, and manage funds globally, all without the traditional complexities of crypto wallets or blockchain infrastructure.

With institutional capital flowing in, regulatory clarity improving, and user adoption surging, Stripe’s acquisition of Privy represents not just a tactical move—but a strategic statement on the future of digital payments.