Financial Technology Company Stripe Acquires Cryptocurrency Wallet Infrastructure Developer Privy
Financial technology company Stripe has acquired cryptocurrency wallet infrastructure developer Privy, highlighting the company’s increasingly deepening involvement in the digital asset space.
Privy confirmed the acquisition in a social media post on Wednesday but did not disclose any financial details. The company stated that it will continue to operate as an independent product within the Stripe ecosystem, “continuing to serve developers building crypto infrastructure, now with more resources, flexibility, and execution.”
Privy’s Role in the Cryptocurrency Space
Privy is not widely known in the cryptocurrency field; they provide infrastructure for companies developing digital asset wallets. The company stated that its technology supports over 50 million cryptocurrency wallets worldwide.
Stripe Targets the $250 Billion Stablecoin Market
Having exited the crypto market six years ago, Stripe made a significant return last October by allowing its U.S. merchant partners to accept payments in the dollar stablecoin USDC and acquiring the stablecoin platform Bridge for a transaction value of $1.1 billion.
In May of this year, Stripe announced the launch of “Stablecoin Financial Accounts” to customers in over 100 countries, allowing them to hold a balance of dollar stablecoins and supporting the sending and receiving of U.S. dollars and euros. The account currently only supports USDC but is set to expand in the future to include Bridge’s own stablecoin, USDB.
Growing Interest in Stablecoins
Stripe co-founder and president John Collison stated in an interview with Bloomberg that, based on his discussions with global financial institutions, banks are showing increasing interest in stablecoins. He remarked:
However, not everyone believes that traditional banks will quickly embrace stablecoins. New York University professor Austin Campbell recently claimed that the U.S. banking lobby is in a state of “panic” over yield-bearing stablecoins, believing they could disrupt the banking industry’s business model. According to Campbell, banks are concerned that if stablecoins begin to pay interest, their own businesses could be “damaged.”