From payment tools to encryption Wallets: Stripe's acquisition of Privy creates a new on-chain financial gateway.

Global payment platform Stripe announced the acquisition of the encryption wallet infrastructure Privy, demonstrating Stripe's determination to lay out its plans in the encryption field and revealing its vision for the future of digital value transfer: "A seamless financial network that integrates fiat and encryption." Privy stated that it will continue to operate independently within the Stripe ecosystem, enhancing the developer experience and simplifying the wallet usage process for users.

Stripe acquisition of Privy to enhance payment experience

Stripe recently completed its acquisition of Privy. Although the specific amount has not been disclosed, this deal is seen as an important step in its entry into the encryption ecosystem.

1/ Today, we’re proud to announce that Stripe is acquiring Privy.

We couldn’t be more excited.

Privy will continue as an independent product – but now we’ll move faster, ship more, and serve you even better, so you can stay focused on your users. pic.twitter.com/8CHJqhqYy7

— Privy (@privy_io) June 11, 2025

Privy focuses on providing "embedded encryption Wallet" infrastructure, allowing developers to directly create Wallet functionalities within applications, enabling users to easily enter the world of encryption without needing to download MetaMask or write down backup mnemonic phrases.

According to official data, Privy technology supports over 50 million encryption accounts and has been adopted by mainstream applications such as OpenSea, Pump.fun, and Hyperliquid. Stripe CEO Patrick Collison stated:

Money needs a place to reside, and Privy is building the world's most powerful programmable vault. In addition to focusing on stablecoin work, we look forward to jointly promoting globalization and internet-native financial services.

Six Years of Disappearance: Stripe's Return to Cryptocurrency

This is not Stripe's first foray into encryption, as it supported Bitcoin payments back in 2014. It temporarily withdrew from the encryption business for six years but made a strong comeback last year. In April last year, Stripe reopened its USDC stablecoin payment function, acquired the stablecoin payment platform Bridge, and launched stablecoin accounts in April this year, available for users in over 100 countries worldwide.

(Stripe is expanding globally! Launching stablecoin product testing, targeting overseas markets)

Co-founder John Collison told Bloomberg that through these initiatives, Stripe is actively positioning stablecoins as a new payment tool alongside traditional bank accounts:

Banks are trying to understand how to integrate stablecoins and incorporate them into their product services.

Privy addresses the biggest pain point for users: simplifying the on-chain experience.

In the current situation where most Wallet tools still require remembering mnemonic phrases and importing browser extension plugins, Privy's focus on "mnemonic-free and in-app embedded wallets" has greatly lowered the barriers to Web3 usage. This user-friendly method of login and asset management makes Privy a key driver of conversion rates for Web3 applications.

How will embedded Wallets change the user experience and business logic of Web3 users?

From a development perspective, Privy provides a set of APIs and infrastructure that allow developers to quickly integrate Wallet functionality without the need to set up a cumbersome key management system themselves. This also enables Stripe to further offer a one-stop solution for encryption payments and user management, strengthening its position as an intermediary in the encryption financial flow:

Today, the intersection of digital ownership and the global financial system is closer than ever before. Stripe, like us, is committed to eliminating the boundaries between encryption and fiat, allowing for deep integration of both.

Can stablecoins shake the banking system?

Many people, including Stripe, are optimistic about the future of stablecoins, but some individuals remain cautious. A U.S. senator has pointed out that some in the banking industry are anxious about "interest-bearing stablecoins," believing that if stablecoins start paying interest, it could disrupt the deposit and lending models of banks.

(Coinbase CEO calls for open "on-chain interest": Stablecoin legislation should allow everyone to share in interest rate dividends)

Therefore, whether banks will embrace stablecoins in the future still depends on regulatory attitudes and market acceptance. However, it is undeniable that technology companies like Stripe are gradually turning encryption finance into a part of everyday life.

This article "From Payment Tools to Encryption Wallets: Stripe's Acquisition of Privy to Create a New On-chain Financial Gateway" first appeared on Chain News ABMedia.